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The residential parking rent price elasticity of car ownership in Japan

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  • Seya, Hajime
  • Nakamichi, Kumiko
  • Yamagata, Yoshiki

Abstract

By using household-level micro data captured through the National Survey of Family Income and Expenditure for 2004, this study evaluates the residential parking rent price elasticity of car ownership in Japan. It analyzes the number of cars owned by a household, using various attributes including expenditure for renting a parking space on a monthly basis. The estimation results derived from the IV-ordered probit model show that the absolute value of parking rent price elasticity of car ownership is, at most, 0.48, which is fairly small (i.e., inelastic). The elasticity value varies depending on city size; for megacities, elasticity is always negative for car ownership, whereas for middle-sized or small cities, towns, and villages, elasticity is positive for one-car ownership and negative for the ownership of more than one car. Hence, when the price of parking increases, some people may switch from more than one car to one car and some people in megacities may switch from one to zero cars. Indeed, the net effect of a price increase may be that non-car ownership increases in megacities and one-car ownership increases in other cities.

Suggested Citation

  • Seya, Hajime & Nakamichi, Kumiko & Yamagata, Yoshiki, 2016. "The residential parking rent price elasticity of car ownership in Japan," Transportation Research Part A: Policy and Practice, Elsevier, vol. 85(C), pages 123-134.
    • Handle: RePEc:eee:transa:v:85:y:2016:i:c:p:123-134
    DOI: 10.1016/j.tra.2016.01.005
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    Cited by:

    1. Ostermeijer, Francis & Koster, Hans RA. & van Ommeren, Jos, 2019. "Residential parking costs and car ownership: Implications for parking policy and automated vehicles," Regional Science and Urban Economics, Elsevier, vol. 77(C), pages 276-288.
    2. Bondemark, Anders & Merkel, Axel, 2023. "Parking not included: The effect of paid residential parking on housing prices and its relationship with public transport proximity," Regional Science and Urban Economics, Elsevier, vol. 99(C).
    3. Brudner, Amir, 2023. "On the management of residential on-street parking: Policies and repercussions," Transport Policy, Elsevier, vol. 138(C), pages 94-107.
    4. Ikezoe, Keigo & Kiriyama, Eriko & Fujimura, Shuzo, 2020. "Car-sharing intention analysis in Japan by comparing the utility of car ownership for car-owners and non-car owners," Transport Policy, Elsevier, vol. 96(C), pages 1-14.
    5. Hajime Seya & Kay W. Axhausen & Makoto Chikaraishi, 2020. "Spatial unconditional quantile regression: application to Japanese parking price data," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 65(2), pages 351-402, October.

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