IDEAS home Printed from https://ideas.repec.org/a/eee/transa/v183y2024ics0965856424000995.html
   My bibliography  Save this article

Estimating the price elasticity of demand for off-street parking in Hiroshima City, Japan

Author

Listed:
  • Seya, Hajime
  • Asaoka, Taiki
  • Chikaraishi, Makoto
  • Axhausen, Kay W.

Abstract

Existing evidence suggests that the demand for parking is inelastic. This study investigates the price elasticity of parking demand in the Japanese coin-parking market, which is characterized by near-free-market conditions. A field survey of parking prices and demand in an approximately 8 km2 area in the center of Hiroshima City was conducted. The prices per 10 min were collected from 949 parking lots, and occupancy rates were observed for 133 parking lots from afternoon to evening. The estimation results, using a Heckman-type sample selection model with instrumental variables, reveal that price elasticity ranged from –1.683 to –0.9971, which is higher than the estimates of previous studies in terms of absolute value. This difference can be attributed to the characteristics of the target area where alternative parking spaces and transportation options are readily available. Our results also indicate that parking operation companies have difficulty raising price in areas with high parking density due to competition, resulting in the increase in the attractiveness of automobiles relative to public transportation. Parking price would need to be controlled to manage urban traffic.

Suggested Citation

  • 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).
  • Handle: RePEc:eee:transa:v:183:y:2024:i:c:s0965856424000995
    DOI: 10.1016/j.tra.2024.104051
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0965856424000995
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.tra.2024.104051?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    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. John Antonakis & Samuel Bendahan & Philippe Jacquart & Rafael Lalive, 2010. "On making causal claims : A review and recommendations," Post-Print hal-02313119, HAL.
    3. Jun Li & Sifan Wu & Xiaoman Feng, 2021. "Optimization of On-Street Parking Charges Based on Price Elasticity of the Expected Perceived Parking Cost," Sustainability, MDPI, vol. 13(10), pages 1-13, May.
    4. 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.
    5. Stock, James H & Wright, Jonathan H & Yogo, Motohiro, 2002. "A Survey of Weak Instruments and Weak Identification in Generalized Method of Moments," Journal of Business & Economic Statistics, American Statistical Association, vol. 20(4), pages 518-529, October.
    6. 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.
    7. Hajime Seya & Kay W. Axhausen & Makoto Chikaraishi, 2020. "Spatial unconditional quantile regression: application to Japanese parking price data," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 65(2), pages 351-402, October.
    8. repec:ucp:bkecon:9781884829987 is not listed on IDEAS
    9. 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.
    10. Marsden, Greg, 2006. "The evidence base for parking policies--a review," Transport Policy, Elsevier, vol. 13(6), pages 447-457, November.
    11. Ostermeijer, Francis & Koster, Hans RA. & van Ommeren, Jos, 2019. "Residential parking costs and car ownership: Implications for parking policy and automated vehicles," Regional Science and Urban Economics, Elsevier, vol. 77(C), pages 276-288.
    12. Fabusuyi, Tayo & Hampshire, Robert C., 2018. "Rethinking performance based parking pricing: A case study of SFpark," Transportation Research Part A: Policy and Practice, Elsevier, vol. 115(C), pages 90-101.
    13. Ostermeijer, Francis & Koster, Hans & Nunes, Leonardo & van Ommeren, Jos, 2022. "Citywide parking policy and traffic: Evidence from Amsterdam," Journal of Urban Economics, Elsevier, vol. 128(C).
    14. van Ommeren, Jos & de Groote, Jesper & Mingardo, Giuliano, 2014. "Residential parking permits and parking supply," Regional Science and Urban Economics, Elsevier, vol. 45(C), pages 33-44.
    15. Gragera, Albert & Hybel, Jesper & Madsen, Edith & Mulalic, Ismir, 2021. "A model for estimation of the demand for on-street parking," Economics of Transportation, Elsevier, vol. 28(C).
    16. Ahmadi Azari, Kian & Arintono, Sulistyo & Hamid, Hussain & Rahmat, Riza Atiq O.K., 2013. "Modelling demand under parking and cordon pricing policy," Transport Policy, Elsevier, vol. 25(C), pages 1-9.
    17. 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.
    18. David Roodman, 2011. "Fitting fully observed recursive mixed-process models with cmp," Stata Journal, StataCorp LP, vol. 11(2), pages 159-206, June.
    19. Ottosson, Dadi Baldur & Chen, Cynthia & Wang, Tingting & Lin, Haiyun, 2013. "The sensitivity of on-street parking demand in response to price changes: A case study in Seattle, WA," Transport Policy, Elsevier, vol. 25(C), pages 222-232.
    20. Asplund, Disa & Pyddoke, Roger, 2021. "Optimal pricing of car use in a small city: A case study of Uppsala," Transport Policy, Elsevier, vol. 114(C), pages 88-103.
    21. Czerny, Achim I. & Shi, Zijun & Zhang, Anming, 2016. "Can market power be controlled by regulation of core prices alone? An empirical analysis of airport demand and car rental price," Transportation Research Part A: Policy and Practice, Elsevier, vol. 91(C), pages 260-272.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Inci, Eren, 2015. "A review of the economics of parking," Economics of Transportation, Elsevier, vol. 4(1), pages 50-63.
    2. Gragera, Albert & Hybel, Jesper & Madsen, Edith & Mulalic, Ismir, 2021. "A model for estimation of the demand for on-street parking," Economics of Transportation, Elsevier, vol. 28(C).
    3. Zhang, Rong & Zhu, Lichao, 2016. "Curbside parking pricing in a city centre using a threshold," Transport Policy, Elsevier, vol. 52(C), pages 16-27.
    4. Gragera, Albert & Albalate, Daniel, 2016. "The impact of curbside parking regulation on garage demand," Transport Policy, Elsevier, vol. 47(C), pages 160-168.
    5. 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.
    6. Brudner, Amir, 2023. "On the management of residential on-street parking: Policies and repercussions," Transport Policy, Elsevier, vol. 138(C), pages 94-107.
    7. 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).
    8. 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.
    9. 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.
    10. Francis Ostermeijer & Hans RA Koster & Leonardo Nunes & Jos van Ommeren, 2021. "Citywide parking policy and traffic: Evidence from Amsterdam," Tinbergen Institute Discussion Papers 21-015/VIII, Tinbergen Institute.
    11. Ostermeijer, Francis & Koster, Hans & Nunes, Leonardo & van Ommeren, Jos, 2022. "Citywide parking policy and traffic: Evidence from Amsterdam," Journal of Urban Economics, Elsevier, vol. 128(C).
    12. De Borger, Bruno & Russo, Antonio, 2017. "The political economy of pricing car access to downtown commercial districts," Transportation Research Part B: Methodological, Elsevier, vol. 98(C), pages 76-93.
    13. Maas, Alexander & Watson, Philip, 2018. "Enthusiasm curbed: Home value implications of curbside parking rights," Land Use Policy, Elsevier, vol. 77(C), pages 705-711.
    14. Chang, Ching-Ter & Chung, Cheng-Kung & Sheu, Jiuh-Biing & Zhuang, Zheng-Yun & Chen, Huang-Mu, 2014. "The optimal dual-pricing policy of mall parking service," Transportation Research Part A: Policy and Practice, Elsevier, vol. 70(C), pages 223-243.
    15. Zakharenko, Roman, 2016. "The time dimension of parking economics," Transportation Research Part B: Methodological, Elsevier, vol. 91(C), pages 211-228.
    16. Taylor, Elizabeth Jean, 2020. "Parking policy: The politics and uneven use of residential parking space in Melbourne," Land Use Policy, Elsevier, vol. 91(C).
    17. Dave, Sanjaykumar M. & Joshi, Gaurang J. & Ravinder, Kayitha & Gore, Ninad, 2019. "Data monitoring for the assessment of on-street parking demand in CBD areas of developing countries," Transportation Research Part A: Policy and Practice, Elsevier, vol. 126(C), pages 152-171.
    18. Khordagui, Nagwa, 2019. "Parking prices and the decision to drive to work: Evidence from California," Transportation Research Part A: Policy and Practice, Elsevier, vol. 130(C), pages 479-495.
    19. 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.
    20. Jun Li & Sifan Wu & Xiaoman Feng, 2021. "Optimization of On-Street Parking Charges Based on Price Elasticity of the Expected Perceived Parking Cost," Sustainability, MDPI, vol. 13(10), pages 1-13, May.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:transa:v:183:y:2024:i:c:s0965856424000995. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/547/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.