Highlights An expression is derived for empirical evaluation of social costs and benefits of street parking charges. Optimal parking charges are derived from this welfare rule. Optimal charges and occupancy rates depend are not constant but depend on turnover etc. A case study shows that introducing street parking charges in residential areas in Stockholm caused a net welfare loss.
Abstract We develop a model for empirical evaluation of the social costs and benefits of street parking charges. From the model, we derive an expression for optimal parking charges and occupancy levels: in optimum, parking search costs are balanced against the loss of consumer surplus from unused parking spaces. Contrary to rules-of-thumb common in practice, optimal occupancy levels are not constant but depend on parking turnover rates and parking search costs. We demonstrate the model's applicability in a case study from Stockholm, where parking charges were recently introduced in suburban residential areas. The charges had considerable effects on parking demand, but our analysis shows that the overall welfare effect was a substantial welfare loss. Using parameters and demand functions estimated from the case study, we calculate optimal parking charges and occupancy levels, and show that the welfare loss arises because the introduced charges were considerably higher than the optimal ones.
Costs and benefits of parking charges in residential areas
Transportation Research Part B: Methodological ; 166 ; 95-109
2022-10-28
15 pages
Aufsatz (Zeitschrift)
Elektronische Ressource
Englisch
Costs and benefits of parking charges in residential suburbs
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