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The time dimension of parking economics

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  • Zakharenko, Roman

Abstract

A model of demand for parking, evolving over time, is proposed. The model features both extensive (whether to park) and intensive (for how long to park) margins of parking demand, allows multidimensional heterogeneity of parkers, and evolution of demand throughout the day. I show that the optimal price for parking is proportional to the rate of arrival of new parkers and is inversely related to the square of the occupancy rate, which is different from previously discussed pricing methods. I show that the primary purpose of pricing is to regulate departures, rather than arrivals, of parkers. I also find that asymmetric information about parkers’ characteristics does not prevent the parking authority from achieving the social optimum. A numerical example compares the optimal policy against the alternatives.

Suggested Citation

  • Zakharenko, Roman, 2016. "The time dimension of parking economics," Transportation Research Part B: Methodological, Elsevier, vol. 91(C), pages 211-228.
    • Handle: RePEc:eee:transb:v:91:y:2016:i:c:p:211-228
    DOI: 10.1016/j.trb.2016.04.008
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Brudner, Amir, 2023. "On the management of residential on-street parking: Policies and repercussions," Transport Policy, Elsevier, vol. 138(C), pages 94-107.
    2. Nourinejad, Mehdi & Roorda, Matthew J., 2017. "Impact of hourly parking pricing on travel demand," Transportation Research Part A: Policy and Practice, Elsevier, vol. 98(C), pages 28-45.
    3. Bahrami, Sina & Roorda, Matthew, 2022. "Autonomous vehicle parking policies: A case study of the City of Toronto," Transportation Research Part A: Policy and Practice, Elsevier, vol. 155(C), pages 283-296.
    4. Zakharenko, Roman, 2023. "Pushing towards shared mobility," Journal of Urban Economics, Elsevier, vol. 138(C).
    5. Zakharenko, Roman, 2019. "The economics of parking occupancy sensors," Economics of Transportation, Elsevier, vol. 17(C), pages 14-23.
    6. Abdelghaffar, Hossam M. & Batista, S.F.A. & Rehman, Abdur & Cao, Jin & Menéndez, Mónica & Jabari, Saif Eddin, 2024. "Comparison of probabilistic cruising-for-parking time estimation models," Transportation Research Part A: Policy and Practice, Elsevier, vol. 184(C).
    7. Leclercq, Ludovic & Sénécat, Alméria & Mariotte, Guilhem, 2017. "Dynamic macroscopic simulation of on-street parking search: A trip-based approach," Transportation Research Part B: Methodological, Elsevier, vol. 101(C), pages 268-282.
    8. 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).
    9. 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.
    10. Fang Zong & Meng Zeng & Ping Yu, 2024. "A parking pricing scheme considering parking dynamics," Transportation, Springer, vol. 51(4), pages 1349-1371, August.
    11. Zakharenko, Roman, 2020. "The merits of privileged parking," Transportation Research Part B: Methodological, Elsevier, vol. 140(C), pages 193-209.
    12. Roman Zakharenko, 2024. "Who should not share? The merits of withholding unused vehicles," Working Papers 2024_07, Business School - Economics, University of Glasgow.
    13. Zhou, Xizhen & Lv, Mengqi & Ji, Yanjie & Zhang, Shuichao & Liu, Yong, 2023. "Pricing curb parking: Differentiated parking fees or cash rewards?," Transport Policy, Elsevier, vol. 142(C), pages 46-58.
    14. Clélia Lopez & Chuan-Lin Zhao & Stéphane Magniol & Nicolas Chiabaut & Ludovic Leclercq, 2019. "Microscopic Simulation of Cruising for Parking of Trucks as a Measure to Manage Freight Loading Zone," Sustainability, MDPI, vol. 11(5), pages 1-14, February.

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    More about this item

    Keywords

    Demand for parking; Endogenous duration of parking; Optimal pricing;
    All these keywords.

    JEL classification:

    • H42 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Private Goods
    • 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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