Regulating Urban Parking Space: the Choice between Meter Fees and Time Restrictions
AbstractOn-street urban parking spaces are typically regulated by either a meter fee or a time restriction. This paper shows that, when the off-street parking market is perfectly competitive, meter fees are more efficient than time restrictions. When on-street parking is free, albeit subject to a time restriction, too many drivers choose to engage in socially wasteful searching for on-street spaces. In contrast, with a meter fee, the relative benefit of parking on-street is reduced, and total search can be minimised. A linear meter fee structure is shown to be optimal. A simple policy prescription is also proposed. Set on-street meter fees equal to off-street parking fees. Finally, a simple numerical model calibrated to central London suggests that the use of optimal meter fees increases parking welfare vy around 5% over an optimal time restriction.
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Bibliographic InfoPaper provided by Katholieke Universiteit Leuven, Centrum voor Economische Studiën in its series Center for Economic Studies - Discussion papers with number ces0021.
Date of creation: Mar 2000
Date of revision:
Other versions of this item:
- Edward Calthrop & Stef Proost, 2000. "Regulating urban parking space: the choice between meter fees and time restrictions," Energy, Transport and Environment Working Papers Series ete0006, Katholieke Universiteit Leuven, Centrum voor Economische Studiën, Energy, Transport and Environment.
- R40 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - General
- R48 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government Pricing and Policy
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-04-12 (All new papers)
- NEP-REG-2008-04-12 (Regulation)
- NEP-URE-2008-04-12 (Urban & Real Estate Economics)
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