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Do parking requirements significantly increase the area dedicated to parking? A test of the effect of parking requirements values in Los Angeles County

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  • Cutter, W. Bowman
  • Franco, Sofia F.

Abstract

Minimum parking requirements (MPRs) are the norm for urban and suburban development in the United States (Davidson et al., 2002). The justification for MPRs is that overflow parking will occupy nearby street or off-street parking. Shoup (1999a) and Willson (1995) provide cases where there is reason to believe that parking space requirements have forced parcel developers to place more parking than they would in the absence of parking requirements. However, to our knowledge the existing literature does not test the effect of parking minimums on the amount of lot space devoted to parking beyond a few case studies. This paper tests the hypothesis that MPRs bind for most land uses using data on suburban office, commercial, industrial and retail property sales from Los Angeles County using both direct and indirect approaches. Our indirect test of the effects of parking requirements is similar to the one used by Glaeser and Gyourko (2003). A simple theoretical model shows that the marginal value of additional parking to the sale price of a building should be equal to the cost of land plus the cost of parking construction. We estimate the marginal values of parking and lot area with spatial methods using a large data set from the Los Angeles area non-residential property sales and find that for most of the property types the marginal value of parking is significantly below that of the parcel area. In addition, we directly examine required and supplied parking and find that on average parking supplied is quite close to the required amount.

Suggested Citation

  • Cutter, W. Bowman & Franco, Sofia F., 2012. "Do parking requirements significantly increase the area dedicated to parking? A test of the effect of parking requirements values in Los Angeles County," Transportation Research Part A: Policy and Practice, Elsevier, vol. 46(6), pages 901-925.
  • Handle: RePEc:eee:transa:v:46:y:2012:i:6:p:901-925
    DOI: 10.1016/j.tra.2012.02.012
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    Cited by:

    1. Clifford Winston, 2013. "On the Performance of the U.S. Transportation System: Caution Ahead," Journal of Economic Literature, American Economic Association, vol. 51(3), pages 773-824, September.
    2. Arnott, Richard & Rowse, John, 2013. "Curbside parking time limits," Transportation Research Part A: Policy and Practice, Elsevier, vol. 55(C), pages 89-110.
    3. Arnott, Richard & Inci, Eren & Rowse, John, 2015. "Downtown curbside parking capacity," Journal of Urban Economics, Elsevier, vol. 86(C), pages 83-97.
    4. Sofia F. Franco, 2015. "Downtown parking supply, work-trip mode choice and urban spatial structure," FEUNL Working Paper Series wp598, Universidade Nova de Lisboa, Faculdade de Economia.
    5. 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.
    6. Sofia F. Franco & W. Bowman Cutter, 2016. "The determinants of non-residential real estate values with special reference to local environmental goods," FEUNL Working Paper Series wp603, Universidade Nova de Lisboa, Faculdade de Economia.
    7. Franco, Sofia F., 2017. "Downtown parking supply, work-trip mode choice and urban spatial structure," Transportation Research Part B: Methodological, Elsevier, vol. 101(C), pages 107-122.
    8. Franco, Sofia & Cutter, W. & Lewis, Skyler, 2020. "The Shadow Cost of Parking Minimums: Evidence from Los Angeles County," Economics Department, Working Paper Series 1014, Economics Department, Pomona College, revised 12 Aug 2020.
    9. Jan K. Brueckner & Sofia F. Franco, 2017. "Parking and Urban Form," Journal of Economic Geography, Oxford University Press, vol. 17(1), pages 95-127.
    10. Qian Liu & Mingjian Zhu & Zuopeng Xiao, 2019. "Workplace Parking Provision and Built Environments: Improving Context-Specific Parking Standards Towards Sustainable Transport," Sustainability, MDPI, Open Access Journal, vol. 11(4), pages 1-23, February.
    11. Inci, Eren, 2015. "A review of the economics of parking," Economics of Transportation, Elsevier, vol. 4(1), pages 50-63.

    More about this item

    Keywords

    Parking supply; Land use; Parking standards;

    JEL classification:

    • R52 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Land Use and Other Regulations
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies

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