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The External Cruising Costs of Parking

Author

Listed:
  • Eren Inci

    (Sabanci University, Turkey)

  • Jos N. van Ommeren

    (VU University Amsterdam, the Netherlands)

  • Martijn Kobus

    (MuConsult, the Netherlands)

Abstract

Existing work emphasizes the importance of traffic congestion externalities, but typically ignores cruising-for-parking externalities. We introduce a novel methodology to estimate the marginal external cruising costs of parking. The level of cruising is identified by examining to what extent the car inflow rate into the parking location falls with parking occupancy level. For a commercial street in Istanbul, we demonstrate that a marginal car parking for one hour induces 3.6 other cars to cruise for parking. This translates into an external cruising cost that far exceeds the external traffic congestion cost created by the trip.

Suggested Citation

  • Eren Inci & Jos N. van Ommeren & Martijn Kobus, 2015. "The External Cruising Costs of Parking," Tinbergen Institute Discussion Papers 15-117/VIII, Tinbergen Institute.
    • Handle: RePEc:tin:wpaper:20150117
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    References listed on IDEAS

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    More about this item

    Keywords

    administrative parking data; cruising for parking; external costs of parking; parking fee; parking occupancy rate;
    All these keywords.

    JEL classification:

    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • 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
    • R48 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government Pricing and Policy

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