Residential parking costs and car ownership: Implications for parking policy and automated vehicles

Francis Ostermeijer*, Hans RA Koster, Jos van Ommeren

*Corresponding author for this work

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Abstract

Residents are often offered on-street parking at a fraction of the market price which may cause excess car ownership. However, residential parking costs are difficult to observe, so we propose an approach to estimate implicit residential parking costs and then examine the effect of these costs on household car ownership. We apply our approach to the four largest metropolitan areas of the Netherlands. Our results indicate that for city centres, annual residential parking costs are around €1000, or roughly 17 percent of car ownership costs, and are more than double the costs in the periphery. Our empirical estimates indicate that the disparity in parking costs explains around 30% of the difference in average car ownership rates between these areas and corresponds to a price elasticity of car demand of about −0.7. We apply these estimates to gauge the potential implications of automated vehicles which suggests that, if residents no longer require parking nearby their homes, car demand in city centres may increase by 8–14 percent.

Original languageEnglish
Pages (from-to)276-288
Number of pages13
JournalRegional Science and Urban Economics
Volume77
Early online date30 May 2019
DOIs
Publication statusPublished - Jul 2019

Funding

We are grateful for suggestions and comments by seminar audiences in Amsterdam, Dusseldorf, New York, and Hong Kong and two anonymous referees. A special thanks to Devi Brands, Jesper de Groote, Joris Klingen, Maurice de Kleijn, Paul Koster, Susan Ogilvie and Barry Ubbels for comments, edits, programming help and discussions on earlier drafts. We also thank the NVM and Bisnode for providing data. This work was supported by the Netherlands Organisation for Scientific Research (NWO) as part of the Spatial and Transport impacts of Automated Driving (STAD) project 438-15-161 and was prepared within the framework of the HSE University Basic Research Program, funded by the Russian Academic Excellence Project '5-100.☆ We are grateful for suggestions and comments by seminar audiences in Amsterdam, Dusseldorf, New York, and Hong Kong and two anonymous referees. A special thanks to Devi Brands, Jesper de Groote, Joris Klingen, Maurice de Kleijn, Paul Koster, Susan Ogilvie and Barry Ubbels for comments, edits, programming help and discussions on earlier drafts. We also thank the NVM and Bisnode for providing data. This work was supported by the Netherlands Organisation for Scientific Research (NWO) as part of the Spatial and Transport impacts of Automated Driving (STAD) project 438-15-161 and was prepared within the framework of the HSE University Basic Research Program, funded by the Russian Academic Excellence Project '5-100.

FundersFunder number
Nederlandse Organisatie voor Wetenschappelijk Onderzoek

    Keywords

    • Automated vehicles
    • Car ownership
    • Residential parking cost
    • Semi-parametric regression

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