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Residential parking in vibrant city districts


  • Molenda, Inga
  • Sieg, Gernot


Living downtown can be advantageous because it enables convenient access to a variety of shopping and leisure activities, but a major disadvantage is the difficulty of finding a parking spot. We formally model the trade-off between privileged parking for residents and economic vitality in terms of the product variety available in a vibrant city district and identify situations in which assigning on-street parking spaces to residential parking constitutes an optimal policy, both from a welfare and a resident perspective. However, we demonstrate that privileged parking for residents is unlikely to result in a first-best allocation of on-street parking spaces, if an efficient level of economic vitality is to be ensured at the same time.

Suggested Citation

  • Molenda, Inga & Sieg, Gernot, 2013. "Residential parking in vibrant city districts," Economics of Transportation, Elsevier, vol. 2(4), pages 131-139.
  • Handle: RePEc:eee:ecotra:v:2:y:2013:i:4:p:131-139 DOI: 10.1016/j.ecotra.2014.02.002

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    References listed on IDEAS

    1. Anderson, Simon P. & de Palma, Andre, 2004. "The economics of pricing parking," Journal of Urban Economics, Elsevier, vol. 55(1), pages 1-20, January.
    2. van Ommeren, Jos & de Groote, Jesper & Mingardo, Giuliano, 2014. "Residential parking permits and parking supply," Regional Science and Urban Economics, Elsevier, vol. 45(C), pages 33-44.
    3. Calthrop, Edward & Proost, Stef, 2006. "Regulating on-street parking," Regional Science and Urban Economics, Elsevier, vol. 36(1), pages 29-48, January.
    4. 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.
    5. Arnott, Richard & Rowse, John, 1999. "Modeling Parking," Journal of Urban Economics, Elsevier, vol. 45(1), pages 97-124, January.
    6. Arnott, Richard & Inci, Eren, 2006. "An integrated model of downtown parking and traffic congestion," Journal of Urban Economics, Elsevier, vol. 60(3), pages 418-442, November.
    7. Glazer, Amihai & Niskanen, Esko, 1992. "Parking fees and congestion," Regional Science and Urban Economics, Elsevier, vol. 22(1), pages 123-132, March.
    8. Shoup, Donald C., 1999. "The trouble with minimum parking requirements," Transportation Research Part A: Policy and Practice, Elsevier, vol. 33(7-8), pages 549-574.
    9. Ben Still & David Simmonds, 2000. "Parking restraint policy and urban vitality," Transport Reviews, Taylor & Francis Journals, vol. 20(3), pages 291-316, January.
    10. Arnott, Richard & Rowse, John, 2009. "Downtown parking in auto city," Regional Science and Urban Economics, Elsevier, vol. 39(1), pages 1-14, January.
    11. repec:ucp:bkecon:9781884829987 is not listed on IDEAS
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    Cited by:

    1. DE BORGER, Bruno & RUSSO, Antonio, 2015. "Lobbying and the political economy of pricing car access to downtown commercial districts," Working Papers 2015012, University of Antwerp, Faculty of Applied Economics.
    2. Arnott, Richard & Inci, Eren & Rowse, John, 2015. "Downtown curbside parking capacity," Journal of Urban Economics, Elsevier, vol. 86(C), pages 83-97.
    3. Groote, Jesper De & Ommeren, Jos Van & Koster, Hans R.A., 2016. "Car ownership and residential parking subsidies: Evidence from Amsterdam," Economics of Transportation, Elsevier, vol. 6(C), pages 25-37.
    4. Inci, Eren, 2015. "A review of the economics of parking," Economics of Transportation, Elsevier, vol. 4(1), pages 50-63.
    5. 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.

    More about this item


    Residential parking; Urban vitality; Love of variety; Local decision-making;

    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
    • R48 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government Pricing and Policy
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior


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