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Car ownership and residential parking subsidies: Evidence from Amsterdam

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  • Groote, Jesper De
  • Ommeren, Jos Van
  • Koster, Hans R.A.

Abstract

Many cities around the world have introduced paid parking but implicitly subsidize parking for example by providing residential parking permits for street parking. We study the welfare effects of residential parking subsidies through changes in car ownership for Amsterdam. We employ a boundary-discontinuity design that exploits spatial variation in the length of waiting lists for permits and therefore in the size of the parking subsidy. In the city center, the waiting time for a permit is up to four years. Our results indicate that one additional year of waiting for a parking permit reduces car ownership with 2 percentage points corresponding to a price elasticity of car demand of −0.8. We demonstrate that subsidizing residential parking induces a substantial welfare loss. On average, a parking permit induces an annual deadweight loss of €270. Furthermore, we show that the provision of parking permits is an income-regressive policy: rich households are five times more likely than poor households to receive these (implicit) parking subsidies.

Suggested Citation

  • 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.
  • Handle: RePEc:eee:ecotra:v:6:y:2016:i:c:p:25-37
    DOI: 10.1016/j.ecotra.2016.07.001
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    as


    Cited by:

    1. Francis Ostermeijer & Hans Koster & Jos van Ommeren, "undated". "Residential parking costs and car ownership: Implications for parking policy and automated vehicles," Tinbergen Institute Discussion Papers 19-020/VIII, Tinbergen Institute.
    2. Daniel Albalate & Albert Gragera, 2019. "“The impact of curbside parking regulations on car ownership”," IREA Working Papers 201909, University of Barcelona, Research Institute of Applied Economics, revised Jun 2019.

    More about this item

    Keywords

    R20; R40; R42; Parking policy; Car ownership; Household location choice;

    JEL classification:

    • R20 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - General
    • R40 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - General
    • R42 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government and Private Investment Analysis; Road Maintenance; Transportation Planning

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