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Time-varying parking prices

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  • Jos Van Ommeren
  • Giovanni Russo

Abstract

According to economic theory, the price of parking must vary with the demand for this good. We study the economic consequences of not doing so by estimating the employees' parking demand at one organisation, which, rather uniquely, follows this recommendation. We estimate the effect of the employees' parking price on demand using an innovative difference-in-differences methodology. The deadweight loss generated by non-optimal pricing of parking is at least 9% of the parking resource costs.

Suggested Citation

  • Jos Van Ommeren & Giovanni Russo, 2012. "Time-varying parking prices," ERSA conference papers ersa12p828, European Regional Science Association.
    • Handle: RePEc:wiw:wiwrsa:ersa12p828
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    References listed on IDEAS

    as
    1. Kobus, Martijn B.W. & Gutiérrez-i-Puigarnau, Eva & Rietveld, Piet & Van Ommeren, Jos N., 2013. "The on-street parking premium and car drivers' choice between street and garage parking," Regional Science and Urban Economics, Elsevier, vol. 43(2), pages 395-403.
    2. Kevin Hasker & Eren Inci, 2014. "Free Parking For All In Shopping Malls," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 55(4), pages 1281-1304, November.
    3. Anderson, Simon P. & de Palma, Andre, 2004. "The economics of pricing parking," Journal of Urban Economics, Elsevier, vol. 55(1), pages 1-20, January.
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    5. Jos Van Ommeren & Derk Wentink, 2012. "The (Hidden) Cost Of Employer Parking Policies," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 53(3), pages 965-978, August.
    6. van Ommeren, Jos & Wentink, Derk & Dekkers, Jasper, 2011. "The real price of parking policy," Journal of Urban Economics, Elsevier, vol. 70(1), pages 25-31, July.
    7. Arnott, Richard & Inci, Eren, 2010. "The stability of downtown parking and traffic congestion," Journal of Urban Economics, Elsevier, vol. 68(3), pages 260-276, November.
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    9. Noether, Monica, 1988. "Competition among hospitals," Journal of Health Economics, Elsevier, vol. 7(3), pages 259-284, September.
    10. Arnott, Richard & Inci, Eren, 2006. "An integrated model of downtown parking and traffic congestion," Journal of Urban Economics, Elsevier, vol. 60(3), pages 418-442, November.
    11. Willson, Richard W. & Shoup, Donald C., 1990. "Parking Subsidies and Travel Choices: Assessing the Evidence," University of California Transportation Center, Working Papers qt3256f490, University of California Transportation Center.
    12. Wilson, Richard W. & Shoup, Donald C., 1990. "Parking Subsidies and Travel Choices: Assessing the Evidence," University of California Transportation Center, Working Papers qt5w24532x, University of California Transportation Center.
    13. Peter O. Steiner, 1957. "Peak Loads and Efficient Pricing," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 71(4), pages 585-610.
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    16. Thomson, Ron B., 1994. "Competition among hospitals in the United States," Health Policy, Elsevier, vol. 27(3), pages 205-231, March.
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    Cited by:

    1. Hamid Reza Eftekhari & Mehdi Ghatee, 2017. "The lower bound for dynamic parking prices to decrease congestion through CBD," Operational Research, Springer, vol. 17(3), pages 761-787, October.
    2. Kobus, Martijn B.W. & Gutiérrez-i-Puigarnau, Eva & Rietveld, Piet & Van Ommeren, Jos N., 2013. "The on-street parking premium and car drivers' choice between street and garage parking," Regional Science and Urban Economics, Elsevier, vol. 43(2), pages 395-403.
    3. Lehner, Stephan & Peer, Stefanie, 2019. "The price elasticity of parking: A meta-analysis," Transportation Research Part A: Policy and Practice, Elsevier, vol. 121(C), pages 177-191.
    4. Eliasson, Jonas & Börjesson, Maria, 2022. "Costs and benefits of parking charges in residential areas," Transportation Research Part B: Methodological, Elsevier, vol. 166(C), pages 95-109.
    5. Winter, Konstanze & Cats, Oded & Martens, Karel & van Arem, Bart, 2021. "Parking space for shared automated vehicles: How less can be more," Transportation Research Part A: Policy and Practice, Elsevier, vol. 143(C), pages 61-77.
    6. Lin, XuXun & Yuan, PengCheng, 2018. "A dynamic parking charge optimal control model under perspective of commuters’ evolutionary game behavior," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 490(C), pages 1096-1110.
    7. de Groote, Jesper & van Ommeren, Jos & Koster, Hans R.A., 2019. "The effect of paid parking and bicycle subsidies on employees’ parking demand," Transportation Research Part A: Policy and Practice, Elsevier, vol. 128(C), pages 46-58.
    8. Odolinski, Kristofer & Pyddoke, Roger, 2019. "Price elasticities of demand for (garage) parking in Stockholm," Working papers in Transport Economics 2019:2, CTS - Centre for Transport Studies Stockholm (KTH and VTI).
    9. Evangelinos, Christos & Tscharaktschiew, Stefan & Marcucci, Edoardo & Gatta, Valerio, 2018. "Pricing workplace parking via cash-out: Effects on modal choice and implications for transport policy," Transportation Research Part A: Policy and Practice, Elsevier, vol. 113(C), pages 369-380.
    10. Pyddoke, Roger, 2016. "Modelling effects of policy instruments for sustainable urban transport in Scandinavia," Working papers in Transport Economics 2016:29, CTS - Centre for Transport Studies Stockholm (KTH and VTI).
    11. Premaratne Samaranayake & Upul Gunawardana & Michael Stokoe, 2023. "Kerbside Parking Assessment Using a Simulation Modelling Approach for Infrastructure Planning—A Metropolitan City Case Study," Sustainability, MDPI, vol. 15(4), pages 1-24, February.
    12. Zakharenko, Roman, 2016. "The time dimension of parking economics," Transportation Research Part B: Methodological, Elsevier, vol. 91(C), pages 211-228.
    13. Inci, Eren, 2015. "A review of the economics of parking," Economics of Transportation, Elsevier, vol. 4(1), pages 50-63.
    14. Xinliu Sui & Xiaofei Ye & Tao Wang & Xingchen Yan & Jun Chen & Bin Ran, 2022. "Microscopic Simulating the Impact of Cruising for Parking on Traffic Efficiency and Emission with Parking-and-Visit Test Data," IJERPH, MDPI, vol. 19(15), pages 1-26, July.

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