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The (Hidden) Cost of Employer Parking Policies

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  • Jos van Ommeren

    (VU University Amsterdam)

  • Derk Wentink

    (VU University Amsterdam)

Abstract

It has been argued that urban planning policies, through minimum parking requirements, and income tax policies induce free employer parking. We show that tax policies induce welfare losses in the order of 12% of parking resource costs, implying an annual deadweight loss in the order of € 5 billion for Europe. In the US, due to the presence of minimum parking requirements, the deadweight loss of policy is even higher and in the order of $ 30 billion.

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Bibliographic Info

Paper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 10-048/3.

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Date of creation: 03 May 2010
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Handle: RePEc:dgr:uvatin:20100048

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Web page: http://www.tinbergen.nl

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Keywords: employer parking; tax distortion; urban planning policies;

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  1. Turner, Robert W., 1987. "Taxes and the number of fringe benefits received," Journal of Public Economics, Elsevier, Elsevier, vol. 33(1), pages 41-57, June.
  2. 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.
  3. Richard Arnott & Eren Inci, 2005. "An Integrated Model of Downtown Parking and Traffic Congestion," NBER Working Papers 11118, National Bureau of Economic Research, Inc.
  4. Small, Kenneth A., 1997. "Economics and urban transportation policy in the United States," Regional Science and Urban Economics, Elsevier, Elsevier, vol. 27(6), pages 671-691, November.
  5. Bento, Antonio M. & Goulder, Lawrence H. & Jacobsen, Mark R. & von Haefen, Roger H., 2007. "Distributional and Efficiency Impacts of Increased U.S. Gasoline Taxes," Working Papers, Cornell University, Department of Applied Economics and Management 127021, Cornell University, Department of Applied Economics and Management.
  6. 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.
  7. Paul Cheshire & Christian A.L. Hilber, 2008. "Office space supply restrictions in Britain: the political economy of market revenge," LSE Research Online Documents on Economics, London School of Economics and Political Science, LSE Library 4372, London School of Economics and Political Science, LSE Library.
  8. Richard Arnott & John Rowse, 2007. "Downtown Parking in Auto City," Boston College Working Papers in Economics, Boston College Department of Economics 665, Boston College Department of Economics.
  9. Richard Arnott, 1990. "A Temporal and Spatial Equilibrium Analysis of Commuter Parking," Discussion Papers, Northwestern University, Center for Mathematical Studies in Economics and Management Science 884, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
  10. Parry, Ian & Small, Kenneth, 2002. "Does Britain or the United States Have the Right Gasoline Tax?," Discussion Papers, Resources For the Future dp-02-12-, Resources For the Future.
  11. repec:ucp:bkecon:9781884829987 is not listed on IDEAS
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Cited by:
  1. Hans R. A. Koster & Piet Rietveld & Jos N. van Ommerren, 2011. "Is the Sky the Limit? An Analysis of High-Rise Office Buildings," SERC Discussion Papers, Spatial Economics Research Centre, LSE 0086, Spatial Economics Research Centre, LSE.
  2. Martijn Kobus & Eva Gutierrez Puigarnau & Piet Rietveld & Jos Van Ommeren, 2012. "The On-Street Parking Premium and Car Drivers' Choice between Street and Garage Parking," Tinbergen Institute Discussion Papers, Tinbergen Institute 12-040/3, Tinbergen Institute.
  3. Jos N. van Ommeren & Eva Gutierrez-i-Puigarnau, 2011. "Distortionary Company Car Taxation: Deadweight Losses through Increased Car Ownership," Tinbergen Institute Discussion Papers, Tinbergen Institute 11-100/3, Tinbergen Institute.
  4. Hasker, Kevin & Inci, Eren, 2012. "Free Parking for All in Shopping Malls," MPRA Paper 35978, University Library of Munich, Germany.

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