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The dynamics of urban traffic congestion and the price of parking

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  • Fosgerau, Mogens
  • de Palma, André

Abstract

We consider commuting in a congested urban area. While an efficient time-varying toll may eliminate queuing, a toll may not be politically feasible. We study the benefit of a substitute: a parking fee at the workplace. An optimal time-varying parking fee is charged at zero rate when there is queuing and eliminates queuing when the rate is non-zero. Within certain limits, inability to charge some drivers for parking does not reduce the potential welfare gain. Drivers who cannot be charged travel when there is queuing. In some cases, interaction between morning and evening commutes can be exploited to remove queuing completely.

Suggested Citation

  • Fosgerau, Mogens & de Palma, André, 2013. "The dynamics of urban traffic congestion and the price of parking," Journal of Public Economics, Elsevier, vol. 105(C), pages 106-115.
  • Handle: RePEc:eee:pubeco:v:105:y:2013:i:c:p:106-115
    DOI: 10.1016/j.jpubeco.2013.06.008
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    Cited by:

    1. Green, Colin P. & Heywood, John S. & Navarro, María, 2016. "Traffic accidents and the London congestion charge," Journal of Public Economics, Elsevier, vol. 133(C), pages 11-22.
    2. Jin Qin & Yuxin He & Linglin Ni, 2014. "Quantitative Efficiency Evaluation Method for Transportation Networks," Sustainability, MDPI, Open Access Journal, vol. 6(12), pages 1-15, November.
    3. Xiao, Ling-Ling & Liu, Tian-Liang & Huang, Hai-Jun, 2016. "On the morning commute problem with carpooling behavior under parking space constraint," Transportation Research Part B: Methodological, Elsevier, vol. 91(C), pages 383-407.
    4. Agarwal, Sumit & Koo, Kang Mo, 2016. "Impact of electronic road pricing (ERP) changes on transport modal choice," Regional Science and Urban Economics, Elsevier, vol. 60(C), pages 1-11.
    5. Liu, Wei & Geroliminis, Nikolas, 2016. "Modeling the morning commute for urban networks with cruising-for-parking: An MFD approach," Transportation Research Part B: Methodological, Elsevier, vol. 93(PA), pages 470-494.
    6. repec:eee:transb:v:106:y:2017:i:c:p:345-374 is not listed on IDEAS
    7. 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.
    8. He, Fang & Yin, Yafeng & Chen, Zhibin & Zhou, Jing, 2015. "Pricing of parking games with atomic players," Transportation Research Part B: Methodological, Elsevier, vol. 73(C), pages 1-12.
    9. Cats, Oded & Zhang, Chen & Nissan, Albania, 2016. "Survey methodology for measuring parking occupancy: Impacts of an on-street parking pricing scheme in an urban center," Transport Policy, Elsevier, vol. 47(C), pages 55-63.
    10. repec:eee:transa:v:102:y:2017:i:c:p:51-67 is not listed on IDEAS
    11. Madsen, Edith & Mulalic, Ismir & Pilegaard, Ninette, 2013. "A model for estimation of the demand for on-street parking," MPRA Paper 52301, University Library of Munich, Germany.
    12. repec:eee:phsmap:v:490:y:2018:i:c:p:1096-1110 is not listed on IDEAS
    13. Zakharenko, Roman, 2016. "The time dimension of parking economics," Transportation Research Part B: Methodological, Elsevier, vol. 91(C), pages 211-228.
    14. Takayama, Yuki & Kuwahara, Masao, 2016. "Scheduling preferences, parking competition, and bottleneck congestion: A model of trip timing and parking location choices by heterogeneous commuters," MPRA Paper 68938, University Library of Munich, Germany.
    15. Inci, Eren, 2015. "A review of the economics of parking," Economics of Transportation, Elsevier, vol. 4(1), pages 50-63.
    16. Geroliminis, Nikolas, 2015. "Cruising-for-parking in congested cities with an MFD representation," Economics of Transportation, Elsevier, vol. 4(3), pages 156-165.

    More about this item

    Keywords

    Parking; Dynamic; Congestion; Urban; Traffic;

    JEL classification:

    • D0 - Microeconomics - - General
    • R4 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics

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