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Residential parking costs and car ownership: Implications for parking policy and automated vehicles

Author

Listed:
  • Francis Ostermeijer

    (Vrije Universiteit Amsterdam)

  • Hans Koster

    (Vrije Universiteit Amsterdam, National Research University)

  • Jos van Ommeren

    (Vrije Universiteit Amsterdam)

Abstract

Residents are often offered on-street parking at a fraction of the market price which may cause excess car ownership. However, residential parking costs are difficult to observe, so we propose an approach to estimate implicit residential parking costs and then examine the effect of these costs on household car ownership. We apply our approach to the four largest metropolitan areas of the Netherlands. Our results indicate that for city centres, annual residential parking costs are around €1000, or roughly 17 percent of car ownership costs. Households facing a one standard deviation (€503) increase in annual parking costs own 0.085 fewer cars on average, corresponding to a price elasticity of car demand of about -0.7. We apply these estimates to gauge the impact of raising residential parking costs and the potential implications of automated vehicles.

Suggested Citation

  • Francis Ostermeijer & Hans Koster & Jos van Ommeren, "undated". "Residential parking costs and car ownership: Implications for parking policy and automated vehicles," Tinbergen Institute Discussion Papers 19-020/VIII, Tinbergen Institute.
    • Handle: RePEc:tin:wpaper:20190020
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    2. Chunqin Zhang & Zhangbiao Yu & Yi Huang & Mengmeng Wang & Skitmore Martin & Guangnian Xiao & Xi Lu, 2024. "Investigating the influence mechanism of goal‐framing theory on urban residents' green travel behavior," Sustainable Development, John Wiley & Sons, Ltd., vol. 32(5), pages 5144-5160, October.
    3. Thumm, Alex Jürgen & Perl, Anthony, 2020. "Puzzling over parking: Assessing the transitional parking requirement in Vancouver, British Columbia," Transportation Research Part A: Policy and Practice, Elsevier, vol. 139(C), pages 85-101.
    4. Tscharaktschiew, Stefan & Reimann, Felix, 2025. "Cruising or Parking," Transportation Research Part A: Policy and Practice, Elsevier, vol. 198(C).
    5. Gössling, Stefan & Humpe, Andreas & Hologa, Rafael & Riach, Nils & Freytag, Tim, 2022. "Parking violations as an economic gamble for public space," Transport Policy, Elsevier, vol. 116(C), pages 248-257.
    6. Flipo, Aurore & Ortar, Nathalie & Sallustio, Madeleine, 2023. "Can the transition to sustainable mobility be fair in rural areas? A stakeholder approach to mobility justice," Transport Policy, Elsevier, vol. 139(C), pages 136-143.
    7. Dahlen Silva & Dávid Földes & Csaba Csiszár, 2021. "Autonomous Vehicle Use and Urban Space Transformation: A Scenario Building and Analysing Method," Sustainability, MDPI, vol. 13(6), pages 1-22, March.
    8. Seya, Hajime & Asaoka, Taiki & Chikaraishi, Makoto & Axhausen, Kay W., 2024. "Estimating the price elasticity of demand for off-street parking in Hiroshima City, Japan," Transportation Research Part A: Policy and Practice, Elsevier, vol. 183(C).
    9. Evan Iacobucci, 2024. "“Would it be weird to live here without a car?”: Using social media to understand car ownership decisions," Transportation, Springer, vol. 51(2), pages 475-500, April.
    10. Mulalic, Ismir & Rouwendal, Jan, 2020. "Does improving public transport decrease car ownership? Evidence from a residential sorting model for the Copenhagen metropolitan area," Regional Science and Urban Economics, Elsevier, vol. 83(C).
    11. Wang, Yineng & Li, Meng & Lin, Xi & He, Fang, 2021. "Online operations strategies for automated multistory parking facilities," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 145(C).
    12. 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).
    13. Anna Lower & Agnieszka Szumilas, 2021. "Parking Policy as a Tool of Sustainable Mobility-Parking Standards in Poland vs. European Experiences," Sustainability, MDPI, vol. 13(20), pages 1-15, October.
    14. Lin, Jen-Jia & Lin, Tzu-Yun & Kadali, Bhadradri Raghuram & Subbarao, Saladi S.V., 2024. "Association of transit-oriented development with transit use: Effects of gentrification and spatial autocorrelation," Transport Policy, Elsevier, vol. 158(C), pages 42-50.
    15. Brudner, Amir, 2023. "On the management of residential on-street parking: Policies and repercussions," Transport Policy, Elsevier, vol. 138(C), pages 94-107.
    16. Schasché, Stephanie E. & Sposato, Robert G. & Hampl, Nina, 2022. "The dilemma of demand-responsive transport services in rural areas: Conflicting expectations and weak user acceptance," Transport Policy, Elsevier, vol. 126(C), pages 43-54.
    17. Stuart Donovan & Thomas de Graaff & Henri L.F. de Groot, 2023. "An inexact science: Accounting for measurement error and downward bias in mode and location choice models," Tinbergen Institute Discussion Papers 23-010/VIII, Tinbergen Institute.
    18. Li, Kun & Xin, Xinai & Hu, Zhiqiang & Zhao, Jiahui & Zhang, Zhe & Yu, Qing, 2025. "Do residential areas require shared parking? A case study of Tianjin, China," Journal of Transport Geography, Elsevier, vol. 125(C).

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    Keywords

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    JEL classification:

    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise
    • R48 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government Pricing and Policy

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