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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

This discussion paper resulted in a publication in the 'International Economic Review' , 53(3), 965-978. 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.

Suggested Citation

  • Jos van Ommeren & Derk Wentink, 2010. "The (Hidden) Cost of Employer Parking Policies," Tinbergen Institute Discussion Papers 10-048/3, Tinbergen Institute.
    • Handle: RePEc:tin:wpaper:20100048
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    Cited by:

    1. Günter Knieps & Thomas Griese & André Grüttner & Oliver Rottmann & Hans-Wilhelm Schiffer & Gernot Sieg & David Stadelmann & Heiner Monheim, 2018. "Fahrverbote, City-Maut, kostenloser öffentlicher Nahverkehr: Wege aus dem Verkehrskollaps?," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 71(09), pages 03-22, May.
    2. 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.
    3. Francis Ostermeijer & Hans R A Koster & Jos van Ommeren & Victor Mayland Nielsen, 2022. "Automobiles and urban density [Urban spatial structure]," Journal of Economic Geography, Oxford University Press, vol. 22(5), pages 1073-1095.
    4. 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.
    5. Kevin Hasker & Eren Inci, 2014. "Free Parking For All In Shopping Malls," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 55(4), pages 1281-1304, November.
    6. Arnott, Richard & Inci, Eren & Rowse, John, 2015. "Downtown curbside parking capacity," Journal of Urban Economics, Elsevier, vol. 86(C), pages 83-97.
    7. Koster, Hans R.A. & Ommeren, Jos van, 2015. "A shaky business: Natural gas extraction, earthquakes and house prices," European Economic Review, Elsevier, vol. 80(C), pages 120-139.
    8. Inci, Eren & Lindsey, Robin, 2015. "Garage and curbside parking competition with search congestion," Regional Science and Urban Economics, Elsevier, vol. 54(C), pages 49-59.
    9. Hans R.A. Koster & Jan Rouwendal, 2017. "Historic Amenities and Housing Externalities: Evidence from the Netherlands," Economic Journal, Royal Economic Society, vol. 127(605), pages 396-420, October.
    10. Matthieu Manant & Serge Pajak & Nicolas Soulié, 2019. "Can social media lead to labor market discrimination? Evidence from a field experiment," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 28(2), pages 225-246, April.
    11. Koster, Hans R.A. & Rietveld, Piet & van Ommerren, Jos N., 2011. "Is the sky the limit? an analysis of high-rise office buildings," LSE Research Online Documents on Economics 58467, London School of Economics and Political Science, LSE Library.
    12. Francis Ostermeijer & Hans RA Koster & Leonardo Nunes & Jos van Ommeren, 2021. "Citywide parking policy and traffic: Evidence from Amsterdam," Tinbergen Institute Discussion Papers 21-015/VIII, Tinbergen Institute.
    13. de Groote, Jesper & van Ommeren, Jos & Koster, Hans R.A., 2019. "The effect of paid parking and bicycle subsidies on employees’ parking demand," Transportation Research Part A: Policy and Practice, Elsevier, vol. 128(C), pages 46-58.
    14. Hans R. A. Koster & Jos van Ommeren, 2019. "Place-Based Policies and the Housing Market," The Review of Economics and Statistics, MIT Press, vol. 101(3), pages 400-414, July.
    15. 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.
    16. Hans R.A. Koster & Jos N. van Ommeren, 2015. "Natural Gas Extraction, Earthquakes and House Prices," Tinbergen Institute Discussion Papers 15-038/VIII, Tinbergen Institute.
    17. 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).
    18. Raphael Hoerler & Fabian Haerri & Merja Hoppe, 2019. "New Solutions in Sustainable Commuting—The Attitudes and Experience of European Stakeholders and Experts in Switzerland," Social Sciences, MDPI, vol. 8(7), pages 1-19, July.
    19. 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.
    20. Brueckner, Jan K. & Franco, Sofia F., 2018. "Employer-paid parking, mode choice, and suburbanization," Journal of Urban Economics, Elsevier, vol. 104(C), pages 35-46.
    21. van Ommeren, Jos & Russo, Giovanni, 2014. "Time-varying parking prices," Economics of Transportation, Elsevier, vol. 3(2), pages 166-174.
    22. Borghorst, Malte & Mulalic, Ismir & van Ommeren, Jos, 2021. "Commuting, Children and the Gender Wage Gap," Working Papers 15-2021, Copenhagen Business School, Department of Economics.
    23. Ostermeijer, Francis & Koster, Hans & Nunes, Leonardo & van Ommeren, Jos, 2022. "Citywide parking policy and traffic: Evidence from Amsterdam," Journal of Urban Economics, Elsevier, vol. 128(C).
    24. Inci, Eren, 2015. "A review of the economics of parking," Economics of Transportation, Elsevier, vol. 4(1), pages 50-63.

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    More about this item

    Keywords

    employer parking; tax distortion; urban planning policies;
    All these keywords.

    JEL classification:

    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise

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