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Time-varying parking prices

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  • van Ommeren, Jos
  • Russo, Giovanni

Abstract

According to welfare-maximising principles, the price of parking must vary per day given shifts in daily demand. We study the economic consequences of not doing so by estimating the employees’ parking demand at an organisation that varies the price of parking by day of the week. We estimate the effect of the employees’ parking price on demand using a difference-in-differences methodology. The deadweight loss of free parking due to overconsumption of parking is about 10% of the organisation’s parking costs (excluding welfare costs due to increased travel externalities). Charging a fixed price per day induces a welfare loss of at least 4% of the organisation’s parking costs.

Suggested Citation

  • van Ommeren, Jos & Russo, Giovanni, 2014. "Time-varying parking prices," Economics of Transportation, Elsevier, vol. 3(2), pages 166-174.
    • Handle: RePEc:eee:ecotra:v:3:y:2014:i:2:p:166-174
    DOI: 10.1016/j.ecotra.2014.05.001
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    1. Willson, Richard W., 1992. "Estimating the Travel and Parking Demand Effects of Employer-Paid Parking," University of California Transportation Center, Working Papers qt37p740qt, University of California Transportation Center.
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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. Semeneh Hunachew Bayih & Surafel Luleseged Tilahun, 2024. "Dynamic vehicle parking pricing. A review," Operations Research and Decisions, Wroclaw University of Science and Technology, Faculty of Management, vol. 34(1), pages 35-59.
    10. 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.
    11. 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).
    12. 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.
    13. Zakharenko, Roman, 2016. "The time dimension of parking economics," Transportation Research Part B: Methodological, Elsevier, vol. 91(C), pages 211-228.
    14. Inci, Eren, 2015. "A review of the economics of parking," Economics of Transportation, Elsevier, vol. 4(1), pages 50-63.
    15. 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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