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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

    Paper provided by University of California Transportation Center in its series University of California Transportation Center, Working Papers with number qt2qw4w2s1.

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    Date of creation: 01 Jan 1997
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    Handle: RePEc:cdl:uctcwp:qt2qw4w2s1

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    Keywords: Social and Behavioral Sciences;

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    Cited by:
    1. Watters, Paul & O'Mahony, Margaret & Caulfield, Brian, 2006. "Response to cash outs for work place parking and work place parking charges," Transport Policy, Elsevier, vol. 13(6), pages 503-510, November.
    2. 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, vol. 25(C), pages 222-232.
    3. Taylor, Brian D., 2004. "The politics of congestion mitigation," Transport Policy, Elsevier, vol. 11(3), pages 299-302, July.
    4. Cairns, S. & Newson, C. & Davis, A., 2010. "Understanding successful workplace travel initiatives in the UK," Transportation Research Part A: Policy and Practice, Elsevier, vol. 44(7), pages 473-494, August.
    5. 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, vol. 45(2), pages 81-90, February.
    6. Tscharaktschiew, Stefan & Hirte, Georg, 2011. "Should subsidies to urban passenger transport be increased? A spatial CGE analysis for a German metropolitan area," Dresden Discussion Paper Series in Economics 01/11, Dresden University of Technology, Faculty of Business and Economics, Department of Economics.
    7. Jos Van Ommeren & Derk Wentink, 2012. "The (Hidden) Cost Of Employer Parking Policies," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 53(3), pages 965-978, 08.
    8. Button, Kenneth, 2006. "The political economy of parking charges in "first" and "second-best" worlds," Transport Policy, Elsevier, vol. 13(6), pages 470-478, November.
    9. Edward Calthrop & Stef Proost, 1998. "Road Transport Externalities," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 11(3), pages 335-348, April.
    10. Guo, Zhan, 2013. "Home parking convenience, household car usage, and implications to residential parking policies," Transport Policy, Elsevier, vol. 29(C), pages 97-106.
    11. Bonsall, Peter & Young, William, 2010. "Is there a case for replacing parking charges by road user charges?," Transport Policy, Elsevier, vol. 17(5), pages 323-334, September.
    12. Wang, Rui & Yuan, Quan, 2013. "Parking practices and policies under rapid motorization: The case of China," Transport Policy, Elsevier, vol. 30(C), pages 109-116.
    13. Petiot, Romain, 2004. "Parking enforcement and travel demand management," Transport Policy, Elsevier, vol. 11(4), pages 399-411, October.
    14. 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 2007020, University of Antwerp, Faculty of Applied Economics.

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