IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/52301.html
   My bibliography  Save this paper

A model for estimation of the demand for on-street parking

Author

Listed:
  • Madsen, Edith
  • Mulalic, Ismir
  • Pilegaard, Ninette

Abstract

This paper presents a stylized econometric model for the demand for on-street parking with focus on estimation of the elasticity of demand with respect to the full cost of parking. The full cost of parking consists of a parking fee and the cost of searching for a vacant parking space (cruising). The cost of cruising is usually unobserved. Ignoring this issue implies a downward bias of the elasticity of demand with respect to the total cost of parking since the cost of cruising depends on the number of cars parked. We also demonstrate that, even when the cost of cruising is unobserved, the demand elasticity can be identified by extending the econometric model to include the spatial interaction between the parking facilities. We illustrate the model with on-street parking data from Copenhagen and find indications of a somewhat greater parking demand elasticity than is usually reported in the literature.

Suggested Citation

  • Madsen, Edith & Mulalic, Ismir & Pilegaard, Ninette, 2013. "A model for estimation of the demand for on-street parking," MPRA Paper 52301, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:52301
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/52301/1/MPRA_paper_52301.pdf
    File Function: original version
    Download Restriction: no
    File URL: https://mpra.ub.uni-muenchen.de/52361/1/MPRA_paper_52301.pdf
    File Function: revised version
    Download Restriction: no
    ---><---

    Other versions of this item:

    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. Anderson, Simon P. & de Palma, Andre, 2004. "The economics of pricing parking," Journal of Urban Economics, Elsevier, vol. 55(1), pages 1-20, January.
    3. Stephen Gibbons & Henry G. Overman, 2012. "Mostly Pointless Spatial Econometrics?," Journal of Regional Science, Wiley Blackwell, vol. 52(2), pages 172-191, May.
    4. Arnott, Richard & Inci, Eren & Rowse, John, 2015. "Downtown curbside parking capacity," Journal of Urban Economics, Elsevier, vol. 86(C), pages 83-97.
    5. 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.
    6. Zakharenko, Roman, 2016. "The time dimension of parking economics," Transportation Research Part B: Methodological, Elsevier, vol. 91(C), pages 211-228.
    7. Fosgerau, Mogens & de Palma, André, 2013. "The dynamics of urban traffic congestion and the price of parking," Journal of Public Economics, Elsevier, vol. 105(C), pages 106-115.
    8. Arnott, Richard & de Palma, Andre & Lindsey, Robin, 1991. "A temporal and spatial equilibrium analysis of commuter parking," Journal of Public Economics, Elsevier, vol. 45(3), pages 301-335, August.
    9. Kelly, J. Andrew & Clinch, J. Peter, 2009. "Temporal variance of revealed preference on-street parking price elasticity," Transport Policy, Elsevier, vol. 16(4), pages 193-199, August.
    10. Arnott, Richard & de Palma, Andre & Lindsey, Robin, 1993. "A Structural Model of Peak-Period Congestion: A Traffic Bottleneck with Elastic Demand," American Economic Review, American Economic Association, vol. 83(1), pages 161-179, March.
    11. Eren Inci & Jos van Ommeren & Martijn Kobus, 2017. "The external cruising costs of parking," Journal of Economic Geography, Oxford University Press, vol. 17(6), pages 1301-1323.
    12. Glazer, Amihai & Niskanen, Esko, 1992. "Parking fees and congestion," Regional Science and Urban Economics, Elsevier, vol. 22(1), pages 123-132, March.
    13. Hensher, David A. & King, Jenny, 2001. "Parking demand and responsiveness to supply, pricing and location in the Sydney central business district," Transportation Research Part A: Policy and Practice, Elsevier, vol. 35(3), pages 177-196, March.
    14. Charles F. Manski, 1993. "Identification of Endogenous Social Effects: The Reflection Problem," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 60(3), pages 531-542.
    15. repec:ucp:bkecon:9781884829987 is not listed on IDEAS
    16. 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.
    17. Marsden, Greg, 2006. "The evidence base for parking policies--a review," Transport Policy, Elsevier, vol. 13(6), pages 447-457, November.
    18. Gragera, Albert & Albalate, Daniel, 2016. "The impact of curbside parking regulation on garage demand," Transport Policy, Elsevier, vol. 47(C), pages 160-168.
    19. Inci, Eren, 2015. "A review of the economics of parking," Economics of Transportation, Elsevier, vol. 4(1), pages 50-63.
    20. Lee, Lung-fei & Yu, Jihai, 2010. "Estimation of spatial autoregressive panel data models with fixed effects," Journal of Econometrics, Elsevier, vol. 154(2), pages 165-185, February.
    21. Calthrop, Edward & Proost, Stef, 2006. "Regulating on-street parking," Regional Science and Urban Economics, Elsevier, vol. 36(1), pages 29-48, January.
    22. Richard Arnott & Tilmann Rave & Ronnie Schöb, 2005. "Alleviating Urban Traffic Congestion," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262012197, December.
    23. 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.
    24. Lee, Lung-fei, 2007. "Identification and estimation of econometric models with group interactions, contextual factors and fixed effects," Journal of Econometrics, Elsevier, vol. 140(2), pages 333-374, October.
    25. Albalate, Daniel & Gragera, Albert, 2017. "The determinants of garage prices and their interaction with curbside regulation," Transportation Research Part A: Policy and Practice, Elsevier, vol. 101(C), pages 86-97.
    26. 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).
    27. Lung-Fei Lee, 2004. "Asymptotic Distributions of Quasi-Maximum Likelihood Estimators for Spatial Autoregressive Models," Econometrica, Econometric Society, vol. 72(6), pages 1899-1925, November.
    28. 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.
    29. van Ommeren, Jos & McIvor, Michael & Mulalic, Ismir & Inci, Eren, 2021. "A novel methodology to estimate cruising for parking and related external costs," Transportation Research Part B: Methodological, Elsevier, vol. 145(C), pages 247-269.
    30. Fosgerau, Mogens & de Palma, André, 2013. "The dynamics of urban traffic congestion and the price of parking�," MPRA Paper 48433, University Library of Munich, Germany.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Haustein, Sonja & Kroesen, Maarten, 2022. "Shifting to more sustainable mobility styles: A latent transition approach," Journal of Transport Geography, Elsevier, vol. 103(C).
    2. 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.
    3. 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).
    4. Gonzalez, Juan Nicolas & Gomez, Juan & Vassallo, Jose Manuel, 2023. "Are low emission zones and on-street parking management effective in reducing parking demand for most polluting vehicles and promoting greener ones?," Transportation Research Part A: Policy and Practice, Elsevier, vol. 176(C).
    5. Piccioni, Cristiana & Valtorta, Marco & Musso, Antonio, 2019. "Investigating effectiveness of on-street parking pricing schemes in urban areas: An empirical study in Rome," Transport Policy, Elsevier, vol. 80(C), pages 136-147.
    6. Gragera, Albert & Albalate, Daniel, 2016. "The impact of curbside parking regulation on garage demand," Transport Policy, Elsevier, vol. 47(C), pages 160-168.
    7. Albalate, Daniel & Gragera, Albert, 2017. "The determinants of garage prices and their interaction with curbside regulation," Transportation Research Part A: Policy and Practice, Elsevier, vol. 101(C), pages 86-97.
    8. 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).
    9. Zakharenko, Roman, 2016. "The time dimension of parking economics," Transportation Research Part B: Methodological, Elsevier, vol. 91(C), pages 211-228.
    10. Inci, Eren, 2015. "A review of the economics of parking," Economics of Transportation, Elsevier, vol. 4(1), pages 50-63.
    11. Yan, Xiang & Levine, Jonathan & Marans, Robert, 2019. "The effectiveness of parking policies to reduce parking demand pressure and car use," Transport Policy, Elsevier, vol. 73(C), pages 41-50.
    12. Evangelinos, Christos & Staub, Nelly & Marcucci, Edoardo & Gatta, Valerio, 2021. "The impact of airport parking fees on the tourist's airport/airline choice behavior," Journal of Air Transport Management, Elsevier, vol. 90(C).

    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. 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.
    3. Inci, Eren & Lindsey, Robin, 2015. "Garage and curbside parking competition with search congestion," Regional Science and Urban Economics, Elsevier, vol. 54(C), pages 49-59.
    4. Takayama, Yuki & Kuwahara, Masao, 2016. "Scheduling preferences, parking competition, and bottleneck congestion: A model of trip timing and parking location choices by heterogeneous commuters," MPRA Paper 68938, University Library of Munich, Germany.
    5. 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.
    6. Gu, Ziyuan & Safarighouzhdi, Farshid & Saberi, Meead & Rashidi, Taha H., 2021. "A macro-micro approach to modeling parking," Transportation Research Part B: Methodological, Elsevier, vol. 147(C), pages 220-244.
    7. 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.
    8. 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.
    9. 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.
    10. 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).
    11. Gu, Ziyuan & Li, Yifan & Saberi, Meead & Rashidi, Taha H. & Liu, Zhiyuan, 2023. "Macroscopic parking dynamics and equitable pricing: Integrating trip-based modeling with simulation-based robust optimization," Transportation Research Part B: Methodological, Elsevier, vol. 173(C), pages 354-381.
    12. Lu, Xiao-Shan & Guo, Ren-Yong & Huang, Hai-Jun & Xu, Xiaoming & Chen, Jiajia, 2021. "Equilibrium analysis of parking for integrated daily commuting," Research in Transportation Economics, Elsevier, vol. 90(C).
    13. Lu, Xiao-Shan & Huang, Hai-Jun & Guo, Ren-Yong & Xiong, Fen, 2021. "Linear location-dependent parking fees and integrated daily commuting patterns with late arrival and early departure in a linear city," Transportation Research Part B: Methodological, Elsevier, vol. 150(C), pages 293-322.
    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. Arnott, Richard & Rowse, John, 2013. "Curbside parking time limits," Transportation Research Part A: Policy and Practice, Elsevier, vol. 55(C), pages 89-110.
    16. Amer, Ahmed & Chow, Joseph Y.J., 2017. "A downtown on-street parking model with urban truck delivery behavior," Transportation Research Part A: Policy and Practice, Elsevier, vol. 102(C), pages 51-67.
    17. 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.
    18. Krishnamurthy, Chandra Kiran B. & Ngo, Nicole S., 2020. "The effects of smart-parking on transit and traffic: Evidence from SFpark," Journal of Environmental Economics and Management, Elsevier, vol. 99(C).
    19. Wang, Pengfei & Guan, Hongzhi & Liu, Peng, 2020. "Modeling and solving the optimal allocation-pricing of public parking resources problem in urban-scale network," Transportation Research Part B: Methodological, Elsevier, vol. 137(C), pages 74-98.
    20. Maas, Alexander & Watson, Philip, 2018. "Enthusiasm curbed: Home value implications of curbside parking rights," Land Use Policy, Elsevier, vol. 77(C), pages 705-711.

    More about this item

    Keywords

    on-street parking; demand estimation.;

    JEL classification:

    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • L91 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Transportation: General
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    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:pra:mprapa:52301. 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: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    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.