Regulating urban parking space: the choice between meter fees and time restrictions

Edward Calthrop () and Stef Proost
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Edward Calthrop: K.U.Leuven, C.E.S., Energy, Transport and Environment

Energy, Transport and Environment Working Papers Series from KU Leuven, Department of Economics - Research Group Energy, Transport and Environment

Abstract: On-street urban parking spaces are typically regulated by either a meter fee or a time restriction. This paper shows that, when the off-street parking market is perfectly competitive, meter fees are more efficient than time restrictions. When on-street parking is free, albeit subject to a time restriction, too many drivers choose to engage in socially wasteful searching for on-street spaces. In contrast, with a meter fee, the relative benefit of parking on-street is reduced, and total search costs can be minimised. A linear meter fee structure is shown to be optimal. A simple policy prescription is also proposed. Set on-street meter fees equal to off- street parking fees. Finally, a simple numerical model calibrated to central London suggests that the use of optimal meter fees increases parking welfare by around 5 per cent over an optimal time restriction.

JEL-codes: R40 R48 (search for similar items in EconPapers)
Pages: 24 pages
Date: 2000-11
New Economics Papers: this item is included in nep-ene, nep-ent and nep-net
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http://feb.kuleuven.be/drc/Economics/misc/ete_workingpapers/ete-wp00-6.pdf (application/pdf)

Related works:
Working Paper: Regulating Urban Parking Space: the Choice between Meter Fees and Time Restrictions (2000)
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Persistent link: https://EconPapers.repec.org/RePEc:ete:etewps:ete0006

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