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 language | English |
|---|---|
| Pages (from-to) | 276-288 |
| Number of pages | 13 |
| Journal | Regional Science and Urban Economics |
| Volume | 77 |
| DOIs | |
| Publication status | Published - 1 Jul 2019 |
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Keywords
- Automated vehicles
- Car ownership
- Residential parking cost
- Semi-parametric regression
Cite this
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Residential parking costs and car ownership : Implications for parking policy and automated vehicles. / Ostermeijer, Francis; Koster, Hans RA; van Ommeren, Jos.
In: Regional Science and Urban Economics, Vol. 77, 01.07.2019, p. 276-288.Research output: Contribution to Journal › Article › Academic › peer-review
TY - JOUR
T1 - Residential parking costs and car ownership
T2 - Implications for parking policy and automated vehicles
AU - Ostermeijer, Francis
AU - Koster, Hans RA
AU - van Ommeren, Jos
PY - 2019/7/1
Y1 - 2019/7/1
N2 - 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.
AB - 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.
KW - Automated vehicles
KW - Car ownership
KW - Residential parking cost
KW - Semi-parametric regression
UR - http://www.scopus.com/inward/record.url?scp=85067660617&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=85067660617&partnerID=8YFLogxK
U2 - 10.1016/j.regsciurbeco.2019.05.005
DO - 10.1016/j.regsciurbeco.2019.05.005
M3 - Article
VL - 77
SP - 276
EP - 288
JO - Regional Science and Urban Economics
JF - Regional Science and Urban Economics
SN - 0166-0462
ER -