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The (Hidden) Cost of Employer Parking Policies

Author

Listed:
  • Jos van Ommeren

    (VU University Amsterdam)

  • Derk Wentink

    (VU University Amsterdam)

Abstract

This discussion paper resulted in a publication in the 'International Economic Review' , 53(3), 965-978. It has been argued that urban planning policies, through minimum parking requirements, and income tax policies induce free employer parking. We show that tax policies induce welfare losses in the order of 12% of parking resource costs, implying an annual deadweight loss in the order of € 5 billion for Europe. In the US, due to the presence of minimum parking requirements, the deadweight loss of policy is even higher and in the order of $ 30 billion.

Suggested Citation

  • Jos van Ommeren & Derk Wentink, 2010. "The (Hidden) Cost of Employer Parking Policies," Tinbergen Institute Discussion Papers 10-048/3, Tinbergen Institute.
  • Handle: RePEc:tin:wpaper:20100048
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    JEL classification:

    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise

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