Economics at your fingertips  

Pricing workplace parking via cash-out: Effects on modal choice and implications for transport policy

Christos Evangelinos, Stefan Tscharaktschiew, Edoardo Marcucci and Valerio Gatta

Transportation Research Part A: Policy and Practice, 2018, vol. 113, issue C, 369-380

Abstract: Employers often provide employees with either subsidized or free parking at work. This distorts relative prices of alternative commuting modes and produces inefficiencies in the transport market. To mitigate this price distortion, parking cash-out has been suggested as an effective and efficient policy to reduce single occupancy car commuting trips. By rewarding the abandonment of car parking use rather than penalizing continued parking, parking cash-out makes commuters sensitive to the opportunity cost of workplace parking while, at the same time, circumventing the opposition usually associated with the imposition of transport user fees. However, practical experiences are rare and only few studies investigate the effectiveness and efficiency of this policy option. This paper empirically tests the effects of parking cash-out on modal choice by performing a two-stage mode choice experiment among commuters in Germany. The first stage collects revealed commuting behavior data. The second stage proposes cash-out scenarios and observes stated mode choice behavior. The joint treatment of regular travel costs and cash outs allows comparing the traditional car travel demand cost elasticity and the parking cash-out elasticity. Results indicate that regardless of model specifications, parking cash-out has a negative and significant effect on the private car choice probability. This bears important implications for future transport policies.

Keywords: Parking cash-out; Employer-paid parking; Fringe benefit; Discrete choice; Modal choice; Cash-out elasticity (search for similar items in EconPapers)
JEL-codes: D12 H23 J33 R40 Q58 R48 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed

Downloads: (external link)
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Ordering information: This journal article can be ordered from
https://shop.elsevie ... _01_ooc_1&version=01

Access Statistics for this article

Transportation Research Part A: Policy and Practice is currently edited by John (J.M.) Rose

More articles in Transportation Research Part A: Policy and Practice from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().

Page updated 2018-08-04
Handle: RePEc:eee:transa:v:113:y:2018:i:c:p:369-380