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Car ownership and residential parking subsidies: Evidence from Amsterdam

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  • Groote, Jesper De
  • Ommeren, Jos Van
  • Koster, Hans R.A.

Abstract

Many cities around the world have introduced paid parking but implicitly subsidize parking for example by providing residential parking permits for street parking. We study the welfare effects of residential parking subsidies through changes in car ownership for Amsterdam. We employ a boundary-discontinuity design that exploits spatial variation in the length of waiting lists for permits and therefore in the size of the parking subsidy. In the city center, the waiting time for a permit is up to four years. Our results indicate that one additional year of waiting for a parking permit reduces car ownership with 2 percentage points corresponding to a price elasticity of car demand of −0.8. We demonstrate that subsidizing residential parking induces a substantial welfare loss. On average, a parking permit induces an annual deadweight loss of €270. Furthermore, we show that the provision of parking permits is an income-regressive policy: rich households are five times more likely than poor households to receive these (implicit) parking subsidies.

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  • Groote, Jesper De & Ommeren, Jos Van & Koster, Hans R.A., 2016. "Car ownership and residential parking subsidies: Evidence from Amsterdam," Economics of Transportation, Elsevier, vol. 6(C), pages 25-37.
    • Handle: RePEc:eee:ecotra:v:6:y:2016:i:c:p:25-37
    DOI: 10.1016/j.ecotra.2016.07.001
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    Cited by:

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    2. Albalate, Daniel & Gragera, Albert, 2020. "The impact of curbside parking regulations on car ownership," Regional Science and Urban Economics, Elsevier, vol. 81(C).
    3. 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).
    4. Brudner, Amir, 2023. "On the management of residential on-street parking: Policies and repercussions," Transport Policy, Elsevier, vol. 138(C), pages 94-107.
    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. Rodríguez, Andrés & Cordera, Rubén & Alonso, Borja & dell'Olio, Luigi & Benavente, Juan, 2022. "Microsimulation parking choice and search model to assess dynamic pricing scenarios," Transportation Research Part A: Policy and Practice, Elsevier, vol. 156(C), pages 253-269.
    7. Galarraga, Ibon & Kallbekken, Steffen & Silvestri, Alessandro, 2020. "Consumer purchases of energy-efficient cars: How different labelling schemes could affect consumer response to price changes," Energy Policy, Elsevier, vol. 137(C).
    8. Seya, Hajime & Nakamichi, Kumiko & Yamagata, Yoshiki, 2016. "The residential parking rent price elasticity of car ownership in Japan," Transportation Research Part A: Policy and Practice, Elsevier, vol. 85(C), pages 123-134.
    9. Scheiner, Joachim & Faust, Nico & Helmer, Johannes & Straub, Michael & Holz-Rau, Christian, 2020. "What's that garage for? Private parking and on-street parking in a high-density urban residential neighbourhood," Journal of Transport Geography, Elsevier, vol. 85(C).
    10. Coelho, Vitor N. & Coelho, Igor M. & Coelho, Bruno N. & de Oliveira, Glauber C. & Barbosa, Alexandre C. & Pereira, Leo & de Freitas, Alan & Santos, Haroldo G. & Ochi, Luis S. & Guimarães, Frederico G., 2017. "A communitarian microgrid storage planning system inside the scope of a smart city," Applied Energy, Elsevier, vol. 201(C), pages 371-381.

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    More about this item

    Keywords

    R20; R40; R42; Parking policy; Car ownership; Household location choice;
    All these keywords.

    JEL classification:

    • R20 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - General
    • R40 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - General
    • R42 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government and Private Investment Analysis; Road Maintenance; Transportation Planning

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