The on-street parking premium and car drivers' choice between street and garage parking
We introduce a methodology to estimate the effect of parking prices on car drivers' choice between street and garage parking. Our key identifying assumption is that the marginal benefit of parking duration does not depend on this choice. The endogeneity of parking duration is acknowledged in the estimation procedure. We apply the methodology during daytime hours to an area where cruising for parking is absent, street parking is ubiquitous and garage parking is discretely located over space. So, in this area, the average distance to the final destination is longer for garage parking than for street parking. We find that drivers are willing to pay a premium for street parking which ranges from € 0.37 to € 0.60. Given a parking duration of 1h, we find that the demand for street parking is price elastic: the price elasticity of demand for the share of street parking is −5.5. However, this price elasticity is much smaller for shorter parking durations. Our estimates imply that even small reductions in street parking prices induce a strong increase in the stock of cars parked on-street. Our estimates also imply that a policy which contains a street premium (so street prices exceed garage prices) is welfare improving, because drivers with longer parking durations are induced to use parking locations that are, on average, farther away, so this policy reduces total walking time.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Edward Calthrop & Stef Proost, 2004.
"Regulating on-street parking,"
Energy, Transport and Environment Working Papers Series
ete0410, KU Leuven, Department of Economics - Research Group Energy, Transport and Environment.
- Edward Calthrop & Stef Proost, 2002. "Regulating on-street parking," Energy, Transport and Environment Working Papers Series ete0202, KU Leuven, Department of Economics - Research Group Energy, Transport and Environment.
- 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.
- Andrew Kelly, J. & Peter Clinch, J., 2006. "Influence of varied parking tariffs on parking occupancy levels by trip purpose," Transport Policy, Elsevier, vol. 13(6), pages 487-495, November.
- Kelly, J. Andrew & Clinch, J. Peter, 2009. "Temporal variance of revealed preference on-street parking price elasticity," Transport Policy, Elsevier, vol. 16(4), pages 193-199, August.
- Shoup, Donald C., 2006. "Cruising for parking," Transport Policy, Elsevier, vol. 13(6), pages 479-486, November.
- Richard Arnott, 1990.
"A Temporal and Spatial Equilibrium Analysis of Commuter Parking,"
884, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Arnott, Richard & de Palma, Andre & Lindsey, Robin, 1991. "A temporal and spatial equilibrium analysis of commuter parking," Journal of Public Economics, Elsevier, vol. 45(3), pages 301-335, August.
- Richard Arnott & Eren Inci, 2005.
"An Integrated Model of Downtown Parking and Traffic Congestion,"
NBER Working Papers
11118, National Bureau of Economic Research, Inc.
- 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.
- Richard Arnott & Eren Inci, 2005. "An Integrated Model of Downtown Parking and Traffic Congestion," Boston College Working Papers in Economics 608, Boston College Department of Economics.
- Hensher, David A. & King, Jenny, 2001. "Parking demand and responsiveness to supply, pricing and location in the Sydney central business district," Transportation Research Part A: Policy and Practice, Elsevier, vol. 35(3), pages 177-196, March.
- Vickrey, William S, 1969. "Congestion Theory and Transport Investment," American Economic Review, American Economic Association, vol. 59(2), pages 251-60, May.
- Glazer, Amihai & Niskanen, Esko, 2001.
"Parking fees and congestion,"
University of California Transportation Center, Working Papers
qt9h51t02k, University of California Transportation Center.
- Hasker, Kevin & Inci, Eren, 2012.
"Free Parking for All in Shopping Malls,"
35978, University Library of Munich, Germany.
- Richard Arnott & Eren Inci & John Rowse, 2012.
"Downtown Parking and Traffic Congestion: A Diagrammatic Exposition,"
ERSA conference papers
ersa12p611, European Regional Science Association.
- Arnott, Richard & Inci, Eren & Rowse, John, 2011. "Downtown Parking and Traffic Congestion: A Diagrammatic Exposition," University of California Transportation Center, Working Papers qt4sb0975r, University of California Transportation Center.
- Arnott, Richard, 2006.
"Spatial competition between parking garages and downtown parking policy,"
Elsevier, vol. 13(6), pages 458-469, November.
- Richard Arnott, 2005. "Spatial Competition between Parking Garages and Downtown Parking Policy," Boston College Working Papers in Economics 627, Boston College Department of Economics.
- Shoup, Donald C., 2006. "Cruising for Parking," University of California Transportation Center, Working Papers qt55s7079f, University of California Transportation Center.
- Arnott, Richard & Rowse, John, 2009.
"Downtown parking in auto city,"
Regional Science and Urban Economics,
Elsevier, vol. 39(1), pages 1-14, January.
- Anderson, Simon P. & de Palma, Andre, 2004. "The economics of pricing parking," Journal of Urban Economics, Elsevier, vol. 55(1), pages 1-20, January.
- John Golias & George Yannis & Michel Harvatis, 2002. "Off-Street Parking Choice Sensitivity," Transportation Planning and Technology, Taylor & Francis Journals, vol. 25(4), pages 333-348, January.
When requesting a correction, please mention this item's handle: RePEc:eee:regeco:v:43:y:2013:i:2:p:395-403. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.