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

Francis Ostermeijer; Hans RA Koster; Jos van Ommeren

doi:10.1016/j.regsciurbeco.2019.05.005

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 language	English
Pages (from-to)	276-288
Number of pages	13
Journal	Regional Science and Urban Economics
Volume	77
Early online date	30 May 2019
DOIs	https://doi.org/10.1016/j.regsciurbeco.2019.05.005
Publication status	Published - 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.

Funders	Funder number
Nederlandse Organisatie voor Wetenschappelijk Onderzoek

Keywords

Automated vehicles
Car ownership
Residential parking cost
Semi-parametric regression

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

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10.1016/j.regsciurbeco.2019.05.005

Residential parking costs and car ownership_Implications for parking policy and automated vehiclesFinal published version, 1.62 MBLicence: Article 25fa Dutch Copyright Act

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title = "Residential parking costs and car ownership: Implications for parking policy and automated vehicles",

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.",

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author = "Francis Ostermeijer and Koster, {Hans RA} and {van Ommeren}, Jos",

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AU - van Ommeren, Jos

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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.

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KW - Semi-parametric regression

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

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Keywords

UN SDGs

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