IDEAS home Printed from https://ideas.repec.org/p/ces/ceswps/_6298.html
   My bibliography  Save this paper

Employer-Paid Parking, Mode Choice, and Suburbanization

Author

Listed:
  • Jan K. Brueckner
  • Sofia F. Franco

Abstract

This paper constructs a theoretical model that facilitates analysis of the effects of employer-paid parking on mode choice, road investment and suburbanization. The model simplifies urban space by dividing it into two zones (islands), center and suburbs, which are connected by a congested road and a public-transit line. Each road commuter requires an allotment of CBD land for parking, and because the central zone’s area is fixed, parking land reduces the amount available for central residences and CBD production. The model characterizes optimal resource allocation from the perspective of a social planner. The planning solution can be decentralized, which requires employee- rather than employer-paid parking, congestion tolls, and a tax (subsidy) to offset the road capacity deficit (surplus). The analysis then considers the effect of switching to employer-paid parking, with the burden of parking costs shifting from road users to employers, thus reducing the wage for all workers. This switch inefficiently increases road usage and capacity investment, while spurring an inefficient increase in suburbanization.

Suggested Citation

  • Jan K. Brueckner & Sofia F. Franco, 2017. "Employer-Paid Parking, Mode Choice, and Suburbanization," CESifo Working Paper Series 6298, CESifo.
  • Handle: RePEc:ces:ceswps:_6298
    as

    Download full text from publisher

    File URL: https://www.cesifo.org/DocDL/cesifo1_wp6298.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Bruno De Borger & Bart Wuyts, 2009. "Commuting, Transport Tax Reform and the Labour Market: Employer-paid Parking and the Relative Efficiency of Revenue Recycling Instruments," Urban Studies, Urban Studies Journal Limited, vol. 46(1), pages 213-233, January.
    2. Brueckner, Jan K., 2007. "Urban growth boundaries: An effective second-best remedy for unpriced traffic congestion?," Journal of Housing Economics, Elsevier, vol. 16(3-4), pages 263-273, November.
    3. ., 2015. "Bargaining power and majority rule," Chapters, in: Game Theory and Public Policy, Second Edition, chapter 15, pages 256-274, Edward Elgar Publishing.
    4. Anderson, Simon P. & de Palma, Andre, 2004. "The economics of pricing parking," Journal of Urban Economics, Elsevier, vol. 55(1), pages 1-20, January.
    5. 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, August.
    6. Rainald Borck & Jan K. Brueckner, 2018. "Optimal Energy Taxation in Cities," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 5(2), pages 481-516.
    7. André de Palma & Robin Lindsey & Guillaume Monchambert, 2017. "The Economics of Crowding in Public Transport," Post-Print hal-01203310, HAL.
    8. Voith, Richard, 1998. "Parking, Transit, and Employment in a Central Business District," Journal of Urban Economics, Elsevier, vol. 44(1), pages 43-58, July.
    9. Borck, Rainald & Wrede, Matthias, 2005. "Political economy of commuting subsidies," Journal of Urban Economics, Elsevier, vol. 57(3), pages 478-499, May.
    10. André De Palma & Robin Lindsey & Guillaume Monchambert, 2015. "The Economics of Crowding in Public Transport," Working Papers hal-01203310, HAL.
    11. Arnott, Richard & de Palma, Andre & Lindsey, Robin, 1991. "A temporal and spatial equilibrium analysis of commuter parking," Journal of Public Economics, Elsevier, vol. 45(3), pages 301-335, August.
    12. Akin C. Buyukeren & Tomoru Hiramatsu, 2016. "Anti-congestion policies in cities with public transportation," Journal of Economic Geography, Oxford University Press, vol. 16(2), pages 395-421.
    13. Borck, Rainald & Wrede, Matthias, 2008. "Commuting subsidies with two transport modes," Journal of Urban Economics, Elsevier, vol. 63(3), pages 841-848, May.
    14. Willson, Richard W. & Shoup, Donald C., 1990. "Parking Subsidies and Travel Choices: Assessing the Evidence," University of California Transportation Center, Working Papers qt3256f490, University of California Transportation Center.
    15. repec:ucp:bkecon:9781884829987 is not listed on IDEAS
    16. Arnott, Richard & Rowse, John, 1999. "Modeling Parking," Journal of Urban Economics, Elsevier, vol. 45(1), pages 97-124, January.
    17. Edward Calthrop & Stef Proost & Kurt van Dender, 2000. "Parking Policies and Road Pricing," Urban Studies, Urban Studies Journal Limited, vol. 37(1), pages 63-76, January.
    18. Jan K. Brueckner & Sofia F. Franco, 2017. "Parking and Urban Form," Journal of Economic Geography, Oxford University Press, vol. 17(1), pages 95-127.
    19. Inci, Eren, 2015. "A review of the economics of parking," Economics of Transportation, Elsevier, vol. 4(1), pages 50-63.
    20. Brueckner, Jan K. & Helsley, Robert W., 2011. "Sprawl and blight," Journal of Urban Economics, Elsevier, vol. 69(2), pages 205-213, March.
    21. Shoup, Donald C., 1997. "Evaluating the effects of cashing out employer-paid parking: Eight case studies," Transport Policy, Elsevier, vol. 4(4), pages 201-216, October.
    22. Shoup, Donald C., 1997. "Evaluating the effects of cashing out employer-paid parking: Eight case studies," University of California Transportation Center, Working Papers qt2qw4w2s1, University of California Transportation Center.
    23. Wilson, Richard W. & Shoup, Donald C., 1990. "Parking Subsidies and Travel Choices: Assessing the Evidence," University of California Transportation Center, Working Papers qt5w24532x, University of California Transportation Center.
    24. Ersoy, Fulya Yuksel & Hasker, Kevin & Inci, Eren, 2016. "Parking as a loss leader at shopping malls," Transportation Research Part B: Methodological, Elsevier, vol. 91(C), pages 98-112.
    25. Franco, Sofia F., 2017. "Downtown parking supply, work-trip mode choice and urban spatial structure," Transportation Research Part B: Methodological, Elsevier, vol. 101(C), pages 107-122.
    26. Verhoef, Erik & Nijkamp, Peter & Rietveld, Piet, 1995. "The economics of regulatory parking policies: The (IM)possibilities of parking policies in traffic regulation," Transportation Research Part A: Policy and Practice, Elsevier, vol. 29(2), pages 141-156, March.
    27. 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.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Leibowicz, Benjamin D., 2020. "Urban land use and transportation planning for climate change mitigation: A theoretical framework," European Journal of Operational Research, Elsevier, vol. 284(2), pages 604-616.
    2. Proque, Andressa Lemes & dos Santos, Gervásio Ferreira & Betarelli Junior, Admir Antonio & Larson, William D., 2020. "Effects of land use and transportation policies on the spatial distribution of urban energy consumption in Brazil," Energy Economics, Elsevier, vol. 90(C).
    3. Xu, Shu-Xian & Liu, Tian-Liang & Huang, Hai-Jun & Wang, David Z.W., 2021. "Optimizing the number of employment subcenters to decentralize a congested city," Regional Science and Urban Economics, Elsevier, vol. 90(C).
    4. Parmar, Janak & Saiyed, Gulnazbanu & Dave, Sanjaykumar, 2023. "Analysis of taste heterogeneity in commuters’ travel decisions using joint parking– and mode–choice model: A case from urban India," Transportation Research Part A: Policy and Practice, Elsevier, vol. 170(C).
    5. Agrawal, David R. & Zhao, Weihua, 2023. "Taxing Uber," Journal of Public Economics, Elsevier, vol. 221(C).
    6. Ryszard Barcik & Leszek Bylinko, 2018. "Transportation Demand Management As A Tool Of Transport Policy," Transport Problems, Silesian University of Technology, Faculty of Transport, vol. 13(2), pages 121-131, June.
    7. Shin, Eun Jin, 2020. "Commuter benefits programs: Impacts on mode choice, VMT, and spillover effects," Transport Policy, Elsevier, vol. 94(C), pages 11-22.
    8. Hirte, Georg & Laes, Renée, 2022. "Working from self-driving cars," CEPIE Working Papers 01/22, Technische Universität Dresden, Center of Public and International Economics (CEPIE).
    9. Larson, William & Zhao, Weihua, 2020. "Self-driving cars and the city: Effects on sprawl, energy consumption, and housing affordability," Regional Science and Urban Economics, Elsevier, vol. 81(C).
    10. Janak Parmar & Gulnazbanu Saiyed & Sanjaykumar Dave, 2021. "Analysis of taste heterogeneity in commuters travel decisions using joint parking and mode choice model: A case from urban India," Papers 2109.01045, arXiv.org, revised Oct 2023.
    11. Tscharaktschiew, Stefan & Reimann, Felix, 2021. "On employer-paid parking and parking (cash-out) policy: A formal synthesis of different perspectives," Transport Policy, Elsevier, vol. 110(C), pages 499-516.
    12. Pons-Rigat, Aleix & Proost, Stef & Turró, Mateu, 2020. "Workplace parking policies in an agglomeration: An illustration for Barcelona," Economics of Transportation, Elsevier, vol. 24(C).
    13. Parmar, Janak & Das, Pritikana & Dave, Sanjaykumar M., 2021. "A machine learning approach for modelling parking duration in urban land-use," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 572(C).
    14. Evangelinos, Christos & Tscharaktschiew, Stefan & Marcucci, Edoardo & Gatta, Valerio, 2018. "Pricing workplace parking via cash-out: Effects on modal choice and implications for transport policy," Transportation Research Part A: Policy and Practice, Elsevier, vol. 113(C), pages 369-380.
    15. Khordagui, Nagwa, 2019. "Parking prices and the decision to drive to work: Evidence from California," Transportation Research Part A: Policy and Practice, Elsevier, vol. 130(C), pages 479-495.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Tscharaktschiew, Stefan & Reimann, Felix, 2021. "On employer-paid parking and parking (cash-out) policy: A formal synthesis of different perspectives," Transport Policy, Elsevier, vol. 110(C), pages 499-516.
    2. Inci, Eren, 2015. "A review of the economics of parking," Economics of Transportation, Elsevier, vol. 4(1), pages 50-63.
    3. Pons-Rigat, Aleix & Proost, Stef & Turró, Mateu, 2020. "Workplace parking policies in an agglomeration: An illustration for Barcelona," Economics of Transportation, Elsevier, vol. 24(C).
    4. Evangelinos, Christos & Tscharaktschiew, Stefan & Marcucci, Edoardo & Gatta, Valerio, 2018. "Pricing workplace parking via cash-out: Effects on modal choice and implications for transport policy," Transportation Research Part A: Policy and Practice, Elsevier, vol. 113(C), pages 369-380.
    5. Bruno De Borger & Bart Wuyts, 2009. "Commuting, Transport Tax Reform and the Labour Market: Employer-paid Parking and the Relative Efficiency of Revenue Recycling Instruments," Urban Studies, Urban Studies Journal Limited, vol. 46(1), pages 213-233, January.
    6. Franco, Sofia F., 2017. "Downtown parking supply, work-trip mode choice and urban spatial structure," Transportation Research Part B: Methodological, Elsevier, vol. 101(C), pages 107-122.
    7. Romain Petiot, 2004. "Parking enforcement and travel demand management," Post-Print hal-02422664, HAL.
    8. De Borger, Bruno & Russo, Antonio, 2017. "The political economy of pricing car access to downtown commercial districts," Transportation Research Part B: Methodological, Elsevier, vol. 98(C), pages 76-93.
    9. 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.
    10. Lehner, Stephan & Peer, Stefanie, 2019. "The price elasticity of parking: A meta-analysis," Transportation Research Part A: Policy and Practice, Elsevier, vol. 121(C), pages 177-191.
    11. Mingardo, Giuliano & van Wee, Bert & Rye, Tom, 2015. "Urban parking policy in Europe: A conceptualization of past and possible future trends," Transportation Research Part A: Policy and Practice, Elsevier, vol. 74(C), pages 268-281.
    12. Petiot, Romain, 2004. "Parking enforcement and travel demand management," Transport Policy, Elsevier, vol. 11(4), pages 399-411, October.
    13. van Ommeren, Jos & Wentink, Derk & Dekkers, Jasper, 2011. "The real price of parking policy," Journal of Urban Economics, Elsevier, vol. 70(1), pages 25-31, July.
    14. Hamer, Paul & Young, William & Currie, Graham, 2012. "Do long stay parkers pay the Melbourne congestion levy?," Transport Policy, Elsevier, vol. 21(C), pages 71-84.
    15. Edward Calthrop & Stef Proost & Kurt van Dender, 2000. "Parking Policies and Road Pricing," Urban Studies, Urban Studies Journal Limited, vol. 37(1), pages 63-76, January.
    16. Fosgerau, Mogens & de Palma, André, 2013. "The dynamics of urban traffic congestion and the price of parking," Journal of Public Economics, Elsevier, vol. 105(C), pages 106-115.
    17. Fang Zong & Yanan He & Yixin Yuan, 2015. "Dependence of Parking Pricing on Land Use and Time of Day," Sustainability, MDPI, vol. 7(7), pages 1-21, July.
    18. Sofia F. Franco, 2015. "Downtown parking supply, work-trip mode choice and urban spatial structure," Nova SBE Working Paper Series wp598, Universidade Nova de Lisboa, Nova School of Business and Economics.
    19. 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, vol. 46(2), pages 285-309.
    20. Khordagui, Nagwa, 2019. "Parking prices and the decision to drive to work: Evidence from California," Transportation Research Part A: Policy and Practice, Elsevier, vol. 130(C), pages 479-495.

    More about this item

    Keywords

    employer-paid parking; mode choice; suburbanization;
    All these keywords.

    JEL classification:

    • R40 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - General

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ces:ceswps:_6298. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Klaus Wohlrabe (email available below). General contact details of provider: https://edirc.repec.org/data/cesifde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.