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Price elasticities of demand for (garage) parking in Stockholm

Author

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  • Odolinski, Kristofer

    (CTS - Centre for Transport Studies Stockholm (KTH and VTI))

  • Pyddoke, Roger

    (CTS - Centre for Transport Studies Stockholm (KTH and VTI))

Abstract

There is scope for generating welfare effects by changing parking fees, where knowledge on price elasticities are central elements in the implementation of an efficient parking policy. In this paper, we estimate price elasticities of demand for five parking garages in the central business district of Stockholm, using transaction data and a price increase implemented in January 2017. The econometric results for the purchased parking hours show an average elasticity estimate at -0.60, while the effect on the decision to park is -0.45. These elasticities vary for the different parking garages, showing that there is a considerable heterogeneity between garages, even within the central business district, which needs to be considered for an efficient parking policy. Based on our estimated elasticity for garage parking (-0.60) and a willingness to pay a premium for curbside parking in previous research, we calculate a proxy for the elasticity of curbside parking in Stockholm, which is found to be -0.39.

Suggested Citation

  • 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).
    • Handle: RePEc:hhs:ctswps:2019_002
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    References listed on IDEAS

    as
    1. van Ommeren, Jos & Russo, Giovanni, 2014. "Time-varying parking prices," Economics of Transportation, Elsevier, vol. 3(2), pages 166-174.
    2. Arnott, Richard, 2006. "Spatial competition between parking garages and downtown parking policy," Transport Policy, Elsevier, vol. 13(6), pages 458-469, November.
    3. Arnott, Richard, 2014. "On the optimal target curbside parking occupancy rate," Economics of Transportation, Elsevier, vol. 3(2), pages 133-144.
    4. 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.
    5. Arnott, Richard & Rowse, John, 2009. "Downtown parking in auto city," Regional Science and Urban Economics, Elsevier, vol. 39(1), pages 1-14, January.
    6. Verhoef, Erik & Nijkamp, Peter & Rietveld, Piet, 1995. "The economics of regulatory parking policies: The (IM)possibilities of parking policies in traffic regulation," Transportation Research Part A: Policy and Practice, Elsevier, vol. 29(2), pages 141-156, March.
    7. 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.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Parking; Price elasticity; Garage; Parking policy;
    All these keywords.

    JEL classification:

    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise
    • R42 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government and Private Investment Analysis; Road Maintenance; Transportation Planning
    • R48 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government Pricing and Policy

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