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Regulating on-street parking

Author

Listed:
  • Edward Calthrop

    () (Community of European Railways (CER))

  • Stef Proost

    () (K.U.Leuven-Center for Economic Studies - CORE, UCL, Belgium)

Abstract

Consider a shopper or tourist driving downtown and trying to park. Two strategies are usually available: either park at a private off-street facility or search for a cheaper on-street spot. We formalise such a setting and use the model to study optimal government regulation of the on-street parking market. It is shown that the optimal on-street fee equals the marginal cost of off-street supply at the optimal quantity. If the off-street market is supplied under constant returns to scale, this provides a particular simple operational rule: the price on street should match that off street. We also extend the model to consider maximum length of stay restrictions and non-competitive private supply. A numerical model, calibrated to central London, investigates the magnitude of an optimal fee.

Suggested Citation

  • 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.
  • Handle: RePEc:ete:etewps:ete0410
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    References listed on IDEAS

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    More about this item

    Keywords

    Parking; Regulating urban transport; Search.;
    All these keywords.

    JEL classification:

    • R40 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - General
    • R48 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government Pricing and Policy
    • L92 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Railroads and Other Surface Transportation
    • H42 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Private Goods

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