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Cashing Out Employer-Paid Parking: A Precedent for Congestion Pricing?

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  • Shoup, Donald C.

Abstract

Almost all parking in the United States is provided free to the user. In the 1990 Nationwide Personal Transportation Survey, motorists reported receiving free parking for 99 percent of all automobile trips. Because the average car is parked 95 percent of the time, it seems clear that, in most cases, congestion tolls would charge motorists for the use of roads during the brief time they are travelling between free parking spaces. In considering the potential benefits of congestion pricing, previous research on parking pricing provides useful evidence that automobile use is surprisingly sensitive to its price. The purpose of this study is (1) to present the evidence from parking studies on the price elasticity of demand for automobile travel, (2) to explore how employer-paid parking subsidies contribute to the problems that congestion tolls are meant to solve, (3) to propose a policy to "cash out" employer-paid parking subsidies, (4) to explain California's new parking cash-out legislation, and (5) to describe some early results of the California legislation and speculate on how it may serve as a precedent for implementing congestion pricing.

Suggested Citation

  • Shoup, Donald C., 1993. "Cashing Out Employer-Paid Parking: A Precedent for Congestion Pricing?," University of California Transportation Center, Working Papers qt8xr2v0j1, University of California Transportation Center.
    • Handle: RePEc:cdl:uctcwp:qt8xr2v0j1
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    References listed on IDEAS

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    1. Lave, Charles, 1992. "Cars and Demographics," University of California Transportation Center, Working Papers qt1344j99t, University of California Transportation Center.
    2. 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.
    3. Shoup, Donald C. & Willson, Richard W., 1992. "Employer-Paid Parking: The Problem and Proposed Solutions," University of California Transportation Center, Working Papers qt2x6240jr, University of California Transportation Center.
    4. Small, Kenneth A., 1992. "Using the Revenues from Congestion Pricing," University of California Transportation Center, Working Papers qt32p9m3mm, University of California Transportation Center.
    5. 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.
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    Cited by:

    1. Bruno De Borger & Bart Wuyts, 2009. "Commuting, Transport Tax Reform and the Labour Market: Employer-paid Parking and the Relative Efficiency of Revenue Recycling Instruments," Urban Studies, Urban Studies Journal Limited, vol. 46(1), pages 213-233, January.
    2. Sofia F. Franco, 2015. "Downtown parking supply, work-trip mode choice and urban spatial structure," Nova SBE Working Paper Series wp598, Universidade Nova de Lisboa, Nova School of Business and Economics.
    3. Franco, Sofia F., 2017. "Downtown parking supply, work-trip mode choice and urban spatial structure," Transportation Research Part B: Methodological, Elsevier, vol. 101(C), pages 107-122.
    4. Michael B. Teitz, 1996. "American Planning in the 1990s: Evolution, Debate and Challenge," Urban Studies, Urban Studies Journal Limited, vol. 33(4-5), pages 649-671, May.

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