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Evaluating the effects of cashing out employer-paid parking: Eight case studies

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  • Shoup, Donald C.
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    Abstract

    California law requires many employers to offer commuters the option to choose cash in lieu of any parking subsidy offered. This report presents case studies of eight firms that have complied with California's cash-out requirement. For the 1,694 employees of the eight firms, the number of solo drivers to work fell by 17 percent after cashing out. The number of carpoolers increased by 64 percent, the number of transit riders increased by 50 percent, and the number who walk or bike to work increased by 39 percent. Vehicle-miles traveled for commuting to the eight firms fell by 12 percent. Carbon dioxide emissions from commuting fell by 367 kilograms per employee per year. The eight firms' spending for commuting subsidies rose by $2 per employee per month because payments in lieu of parking increased slightly more than spending for parking declined. Federal and state income tax revenues increased by $65 per employee per year because many commuters voluntarily traded tax-exempt parking subsidies for taxable cash. Employers praised the cash option for its simplicity and fairness, and said that it helped to recruit and retain employees. The benefit/cost ratio of the eight cash-out programs was at least 4/1. In summary, these eight case studies show that cashing out employer-paid parking can benefit commuters, employers, taxpayers, and the environment. All these benefits derive from subsidizing people, not parking.

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    Bibliographic Info

    Article provided by Elsevier in its journal Transport Policy.

    Volume (Year): 4 (1997)
    Issue (Month): 4 (October)
    Pages: 201-216

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    Handle: RePEc:eee:trapol:v:4:y:1997:i:4:p:201-216

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    References

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    1. Small, K.A. & Kazimi, C., 1994. "On the Costs of Air Pollution from Motor Vehicules," Papers, California Irvine - School of Social Sciences 94-95-3, California Irvine - School of Social Sciences.
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    3. Shoup, Donald C., 1997. "The High Cost of Free Parking," University of California Transportation Center, Working Papers qt4vz087cc, University of California Transportation Center.
    4. Shoup, Donald C., 1997. "The High Cost of Free Parking," University of California Transportation Center, Working Papers qt25w617n7, University of California Transportation Center.
    5. Shoup, Donald C., 1992. "Cashing Out Employer-Paid Parking," University of California Transportation Center, Working Papers qt4548s6j5, University of California Transportation Center.
    6. Shoup, Donald C., 1997. "Evaluating the Effects of Parking Cash Out: Eight Case Studies," University of California Transportation Center, Working Papers qt5nc6w2dj, University of California Transportation Center.
    7. Hanemann, W Michael, 1991. "Willingness to Pay and Willingness to Accept: How Much Can They Differ?," American Economic Review, American Economic Association, American Economic Association, vol. 81(3), pages 635-47, June.
    8. Wiktor L. Adamowicz & Vinay Bhardwaj & Bruce Macnab, 1993. "Experiments on the Difference between Willingness to Pay and Willingness to Accept," Land Economics, University of Wisconsin Press, University of Wisconsin Press, vol. 69(4), pages 416-427.
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    Cited by:
    1. Wang, Rui & Yuan, Quan, 2013. "Parking practices and policies under rapid motorization: The case of China," Transport Policy, Elsevier, Elsevier, vol. 30(C), pages 109-116.
    2. Petiot, Romain, 2004. "Parking enforcement and travel demand management," Transport Policy, Elsevier, Elsevier, vol. 11(4), pages 399-411, October.
    3. Cairns, S. & Newson, C. & Davis, A., 2010. "Understanding successful workplace travel initiatives in the UK," Transportation Research Part A: Policy and Practice, Elsevier, Elsevier, vol. 44(7), pages 473-494, August.
    4. Jos van Ommeren & Derk Wentink, 2010. "The (Hidden) Cost of Employer Parking Policies," Tinbergen Institute Discussion Papers, Tinbergen Institute 10-048/3, Tinbergen Institute.
    5. Tscharaktschiew, Stefan & Hirte, Georg, 2012. "Should subsidies to urban passenger transport be increased? A spatial CGE analysis for a German metropolitan area," Transportation Research Part A: Policy and Practice, Elsevier, Elsevier, vol. 46(2), pages 285-309.
    6. Taylor, Brian D., 2004. "The politics of congestion mitigation," Transport Policy, Elsevier, Elsevier, vol. 11(3), pages 299-302, July.
    7. Ottosson, Dadi Baldur & Chen, Cynthia & Wang, Tingting & Lin, Haiyun, 2013. "The sensitivity of on-street parking demand in response to price changes: A case study in Seattle, WA," Transport Policy, Elsevier, Elsevier, vol. 25(C), pages 222-232.
    8. Correia, Gonçalo & Viegas, José Manuel, 2011. "Carpooling and carpool clubs: Clarifying concepts and assessing value enhancement possibilities through a Stated Preference web survey in Lisbon, Portugal," Transportation Research Part A: Policy and Practice, Elsevier, Elsevier, vol. 45(2), pages 81-90, February.
    9. Button, Kenneth, 2006. "The political economy of parking charges in "first" and "second-best" worlds," Transport Policy, Elsevier, Elsevier, vol. 13(6), pages 470-478, November.
    10. Guo, Zhan, 2013. "Home parking convenience, household car usage, and implications to residential parking policies," Transport Policy, Elsevier, Elsevier, vol. 29(C), pages 97-106.
    11. DE BORGER, Bruno & WUYTS, Bart, 2007. "Commuting, transport tax reform and the labour market: Employer-paid parking and the relative efficiency of revenue recycling instruments," Working Papers, University of Antwerp, Faculty of Applied Economics 2007020, University of Antwerp, Faculty of Applied Economics.
    12. Edward Calthrop & Stef Proost, 1998. "Road Transport Externalities," Environmental & Resource Economics, European Association of Environmental and Resource Economists, European Association of Environmental and Resource Economists, vol. 11(3), pages 335-348, April.
    13. Bonsall, Peter & Young, William, 2010. "Is there a case for replacing parking charges by road user charges?," Transport Policy, Elsevier, Elsevier, vol. 17(5), pages 323-334, September.
    14. Watters, Paul & O'Mahony, Margaret & Caulfield, Brian, 2006. "Response to cash outs for work place parking and work place parking charges," Transport Policy, Elsevier, Elsevier, vol. 13(6), pages 503-510, November.

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