[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/a/eee/regeco/v77y2019icp276-288.html
   My bibliography  Save this article

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

Author

Listed:
  • Ostermeijer, Francis
  • Koster, Hans RA.
  • van Ommeren, Jos
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.

Suggested Citation

  • Ostermeijer, Francis & Koster, Hans RA. & van Ommeren, Jos, 2019. "Residential parking costs and car ownership: Implications for parking policy and automated vehicles," Regional Science and Urban Economics, Elsevier, vol. 77(C), pages 276-288.
    • Handle: RePEc:eee:regeco:v:77:y:2019:i:c:p:276-288
    DOI: 10.1016/j.regsciurbeco.2019.05.005
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0166046219300237
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.regsciurbeco.2019.05.005?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Stephan Heblich & Stephen J Redding & Daniel M Sturm, 2020. "The Making of the Modern Metropolis: Evidence from London," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 135(4), pages 2059-2133.
    2. Dargay, Joyce M., 2002. "Determinants of car ownership in rural and urban areas: a pseudo-panel analysis," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 38(5), pages 351-366, September.
    3. Guo, Zhan, 2013. "Does residential parking supply affect household car ownership? The case of New York City," Journal of Transport Geography, Elsevier, vol. 26(C), pages 18-28.
    4. Christophe Bontemps & Michel Simioni & Yves Surry, 2008. "Semiparametric hedonic price models: assessing the effects of agricultural nonpoint source pollution," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 23(6), pages 825-842.
    5. Daniel P. McMillen & Christian L. Redfearn, 2010. "Estimation And Hypothesis Testing For Nonparametric Hedonic House Price Functions," Journal of Regional Science, Wiley Blackwell, vol. 50(3), pages 712-733, August.
    6. Robinson, Peter M, 1988. "Root- N-Consistent Semiparametric Regression," Econometrica, Econometric Society, vol. 56(4), pages 931-954, July.
    7. Reid Ewing & Robert Cervero, 2010. "Travel and the Built Environment," Journal of the American Planning Association, Taylor & Francis Journals, vol. 76(3), pages 265-294.
    8. Albert Saiz, 2010. "The Geographic Determinants of Housing Supply," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 125(3), pages 1253-1296.
    9. Edward L. Glaeser & Janet E. Kohlhase, 2004. "Cities, regions and the decline of transport costs," Advances in Spatial Science, in: Raymond J. G. M. Florax & David A. Plane (ed.), Fifty Years of Regional Science, pages 197-228, Springer.
    10. Fagnant, Daniel J. & Kockelman, Kara, 2015. "Preparing a nation for autonomous vehicles: opportunities, barriers and policy recommendations," Transportation Research Part A: Policy and Practice, Elsevier, vol. 77(C), pages 167-181.
    11. Groote, Jesper De & Ommeren, Jos Van & Koster, Hans R.A., 2016. "Car ownership and residential parking subsidies: Evidence from Amsterdam," Economics of Transportation, Elsevier, vol. 6(C), pages 25-37.
    12. van Ommeren, Jos & Wentink, Derk & Dekkers, Jasper, 2011. "The real price of parking policy," Journal of Urban Economics, Elsevier, vol. 70(1), pages 25-31, July.
    13. Nathaniel Baum-Snow & Loren Brandt & J. Vernon Henderson & Matthew A. Turner & Qinghua Zhang, 2017. "Roads, Railroads, and Decentralization of Chinese Cities," The Review of Economics and Statistics, MIT Press, vol. 99(3), pages 435-448, July.
    14. Garcia-López, Miquel-Ángel & Holl, Adelheid & Viladecans-Marsal, Elisabet, 2015. "Suburbanization and highways in Spain when the Romans and the Bourbons still shape its cities," Journal of Urban Economics, Elsevier, vol. 85(C), pages 52-67.
    15. Bhat, Chandra R. & Guo, Jessica Y., 2007. "A comprehensive analysis of built environment characteristics on household residential choice and auto ownership levels," Transportation Research Part B: Methodological, Elsevier, vol. 41(5), pages 506-526, June.
    16. Seya, Hajime & Nakamichi, Kumiko & Yamagata, Yoshiki, 2016. "The residential parking rent price elasticity of car ownership in Japan," Transportation Research Part A: Policy and Practice, Elsevier, vol. 85(C), pages 123-134.
    17. Patrick Bajari & Matthew E. Kahn, 2005. "Estimating Housing Demand With an Application to Explaining Racial Segregation in Cities," Journal of Business & Economic Statistics, American Statistical Association, vol. 23, pages 20-33, January.
    18. Koster, Hans R.A. & van Ommeren, Jos & Rietveld, Piet, 2012. "Bombs, boundaries and buildings," Regional Science and Urban Economics, Elsevier, vol. 42(4), pages 631-641.
    19. Grislain-Letrémy, Céline & Katossky, Arthur, 2014. "The impact of hazardous industrial facilities on housing prices: A comparison of parametric and semiparametric hedonic price models," Regional Science and Urban Economics, Elsevier, vol. 49(C), pages 93-107.
    20. Or Levkovich & Jan Rouwendal & Jos van Ommeren, 2020. "The impact of highways on population redistribution: the role of land development restrictions [Roads and innovation]," Journal of Economic Geography, Oxford University Press, vol. 20(3), pages 783-808.
    21. Matas, Anna & Raymond, José-Luis & Roig, José-Luis, 2009. "Car ownership and access to jobs in Spain," Transportation Research Part A: Policy and Practice, Elsevier, vol. 43(6), pages 607-617, July.
    22. Gelauff, George & Ossokina, Ioulia & Teulings, Coen, 2019. "Spatial and welfare effects of automated driving: Will cities grow, decline or both?," Transportation Research Part A: Policy and Practice, Elsevier, vol. 121(C), pages 277-294.
    23. Mingardo, Giuliano & van Wee, Bert & Rye, Tom, 2015. "Urban parking policy in Europe: A conceptualization of past and possible future trends," Transportation Research Part A: Policy and Practice, Elsevier, vol. 74(C), pages 268-281.
    24. Mulalic, Ismir & Rouwendal, Jan, 2015. "The impact of fixed and variable cost on automobile demand: Evidence from Denmark," Economics of Transportation, Elsevier, vol. 4(4), pages 227-240.
    25. Arnott, Richard, 2006. "Spatial competition between parking garages and downtown parking policy," Transport Policy, Elsevier, vol. 13(6), pages 458-469, November.
    26. repec:dau:papers:123456789/14350 is not listed on IDEAS
    27. Antonio M. Bento & Maureen L. Cropper & Ahmed Mushfiq Mobarak & Katja Vinha, 2005. "The Effects of Urban Spatial Structure on Travel Demand in the United States," The Review of Economics and Statistics, MIT Press, vol. 87(3), pages 466-478, August.
    28. Rietveld, Piet & Daniel, Vanessa, 2004. "Determinants of bicycle use: do municipal policies matter?," Transportation Research Part A: Policy and Practice, Elsevier, vol. 38(7), pages 531-550, August.
    29. Huang, Naqun & Li, Jing & Ross, Amanda, 2018. "The impact of the cost of car ownership on the house price gradient in Singapore," Regional Science and Urban Economics, Elsevier, vol. 68(C), pages 160-171.
    30. Clark, Stephen D. & Rey, Sergio, 2017. "Temporal dynamics in local vehicle ownership for Great Britain," Journal of Transport Geography, Elsevier, vol. 62(C), pages 30-37.
    31. Nathaniel Baum-Snow, 2007. "Did Highways Cause Suburbanization?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 122(2), pages 775-805.
    32. Ding, Chuan & Wang, Donggen & Liu, Chao & Zhang, Yi & Yang, Jiawen, 2017. "Exploring the influence of built environment on travel mode choice considering the mediating effects of car ownership and travel distance," Transportation Research Part A: Policy and Practice, Elsevier, vol. 100(C), pages 65-80.
    33. Sunding, David L. & Swoboda, Aaron M., 2010. "Hedonic analysis with locally weighted regression: An application to the shadow cost of housing regulation in Southern California," Regional Science and Urban Economics, Elsevier, vol. 40(6), pages 550-573, November.
    34. Bhat, Chandra R. & Pulugurta, Vamsi, 1998. "A comparison of two alternative behavioral choice mechanisms for household auto ownership decisions," Transportation Research Part B: Methodological, Elsevier, vol. 32(1), pages 61-75, January.
    35. Zakharenko, Roman, 2016. "Self-driving cars will change cities," Regional Science and Urban Economics, Elsevier, vol. 61(C), pages 26-37.
    36. Jeffrey M. Wooldridge, 2015. "Control Function Methods in Applied Econometrics," Journal of Human Resources, University of Wisconsin Press, vol. 50(2), pages 420-445.
    37. repec:ucp:bkecon:9781884829987 is not listed on IDEAS
    38. Edward Calthrop & Stef Proost & Kurt van Dender, 2000. "Parking Policies and Road Pricing," Urban Studies, Urban Studies Journal Limited, vol. 37(1), pages 63-76, January.
    39. Duranton, Gilles & Turner, Matthew A., 2018. "Urban form and driving: Evidence from US cities," Journal of Urban Economics, Elsevier, vol. 108(C), pages 170-191.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Thumm, Alex Jürgen & Perl, Anthony, 2020. "Puzzling over parking: Assessing the transitional parking requirement in Vancouver, British Columbia," Transportation Research Part A: Policy and Practice, Elsevier, vol. 139(C), pages 85-101.
    2. Gössling, Stefan & Humpe, Andreas & Hologa, Rafael & Riach, Nils & Freytag, Tim, 2022. "Parking violations as an economic gamble for public space," Transport Policy, Elsevier, vol. 116(C), pages 248-257.
    3. Flipo, Aurore & Ortar, Nathalie & Sallustio, Madeleine, 2023. "Can the transition to sustainable mobility be fair in rural areas? A stakeholder approach to mobility justice," Transport Policy, Elsevier, vol. 139(C), pages 136-143.
    4. Dahlen Silva & Dávid Földes & Csaba Csiszár, 2021. "Autonomous Vehicle Use and Urban Space Transformation: A Scenario Building and Analysing Method," Sustainability, MDPI, vol. 13(6), pages 1-22, March.
    5. Bondemark, Anders & Merkel, Axel, 2023. "Parking not included: The effect of paid residential parking on housing prices and its relationship with public transport proximity," Regional Science and Urban Economics, Elsevier, vol. 99(C).
    6. Brudner, Amir, 2023. "On the management of residential on-street parking: Policies and repercussions," Transport Policy, Elsevier, vol. 138(C), pages 94-107.
    7. Stuart Donovan & Thomas de Graaff & Henri L.F. de Groot, 2023. "An inexact science: Accounting for measurement error and downward bias in mode and location choice models," Tinbergen Institute Discussion Papers 23-010/VIII, Tinbergen Institute.
    8. Mulalic, Ismir & Rouwendal, Jan, 2020. "Does improving public transport decrease car ownership? Evidence from a residential sorting model for the Copenhagen metropolitan area," Regional Science and Urban Economics, Elsevier, vol. 83(C).
    9. Seya, Hajime & Asaoka, Taiki & Chikaraishi, Makoto & Axhausen, Kay W., 2024. "Estimating the price elasticity of demand for off-street parking in Hiroshima City, Japan," Transportation Research Part A: Policy and Practice, Elsevier, vol. 183(C).
    10. Anna Lower & Agnieszka Szumilas, 2021. "Parking Policy as a Tool of Sustainable Mobility-Parking Standards in Poland vs. European Experiences," Sustainability, MDPI, vol. 13(20), pages 1-15, October.
    11. Schasché, Stephanie E. & Sposato, Robert G. & Hampl, Nina, 2022. "The dilemma of demand-responsive transport services in rural areas: Conflicting expectations and weak user acceptance," Transport Policy, Elsevier, vol. 126(C), pages 43-54.
    12. Evan Iacobucci, 2024. "“Would it be weird to live here without a car?”: Using social media to understand car ownership decisions," Transportation, Springer, vol. 51(2), pages 475-500, April.
    13. Wang, Yineng & Li, Meng & Lin, Xi & He, Fang, 2021. "Online operations strategies for automated multistory parking facilities," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 145(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Francis Ostermeijer & Hans R A Koster & Jos van Ommeren & Victor Mayland Nielsen, 2022. "Automobiles and urban density [Urban spatial structure]," Journal of Economic Geography, Oxford University Press, vol. 22(5), pages 1073-1095.
    2. Gilles Duranton & Geetika Nagpal & Matthew A. Turner, 2020. "Transportation Infrastructure in the US," NBER Chapters, in: Economic Analysis and Infrastructure Investment, pages 165-210, National Bureau of Economic Research, Inc.
    3. Redding, Stephen, 2020. "Trade and Geography," CEPR Discussion Papers 15268, C.E.P.R. Discussion Papers.
    4. Jukka Heinonen & Michał Czepkiewicz & Áróra Árnadóttir & Juudit Ottelin, 2021. "Drivers of Car Ownership in a Car-Oriented City: A Mixed-Method Study," Sustainability, MDPI, vol. 13(2), pages 1-26, January.
    5. Hanlon, W.Walker & Heblich, Stephan, 2022. "History and urban economics," Regional Science and Urban Economics, Elsevier, vol. 94(C).
    6. Brudner, Amir, 2023. "On the management of residential on-street parking: Policies and repercussions," Transport Policy, Elsevier, vol. 138(C), pages 94-107.
    7. Hans R. A. Koster & Jos N. van Ommeren & Piet Rietveld, 2016. "Historic amenities, income and sorting of households," Journal of Economic Geography, Oxford University Press, vol. 16(1), pages 203-236.
    8. Mulalic, Ismir & Rouwendal, Jan, 2020. "Does improving public transport decrease car ownership? Evidence from a residential sorting model for the Copenhagen metropolitan area," Regional Science and Urban Economics, Elsevier, vol. 83(C).
    9. Koster, Hans R.A. & Rouwendal, Jan, 2013. "Agglomeration, commuting costs, and the internal structure of cities," Regional Science and Urban Economics, Elsevier, vol. 43(2), pages 352-366.
    10. Guerra, Erick, 2015. "The geography of car ownership in Mexico City: a joint model of households’ residential location and car ownership decisions," Journal of Transport Geography, Elsevier, vol. 43(C), pages 171-180.
    11. Bondemark, Anders & Merkel, Axel, 2023. "Parking not included: The effect of paid residential parking on housing prices and its relationship with public transport proximity," Regional Science and Urban Economics, Elsevier, vol. 99(C).
    12. Sabreena Anowar & Naveen Eluru & Luis F. Miranda-Moreno, 2014. "Alternative Modeling Approaches Used for Examining Automobile Ownership: A Comprehensive Review," Transport Reviews, Taylor & Francis Journals, vol. 34(4), pages 441-473, July.
    13. Stephan Heblich & Stephen J Redding & Daniel M Sturm, 2020. "The Making of the Modern Metropolis: Evidence from London," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 135(4), pages 2059-2133.
    14. Koster, Hans & Hayakawa, Kazunobu & Thisse, Jacques-François, 2021. "High-speed Rail and the Spatial Distribution of Economic Activity: Evidence from Japan's Shinkansen," CEPR Discussion Papers 15771, C.E.P.R. Discussion Papers.
    15. Yu Sang Chang & Sung Jun Jo & Yoo-Taek Lee & Yoonji Lee, 2021. "Population Density or Populations Size. Which Factor Determines Urban Traffic Congestion?," Sustainability, MDPI, vol. 13(8), pages 1-21, April.
    16. Santamaria, Marta, 2020. "Reshaping Infrastructure: Evidence from the division of Germany," The Warwick Economics Research Paper Series (TWERPS) 1244, University of Warwick, Department of Economics.
    17. Soltani, Ali, 2017. "Social and urban form determinants of vehicle ownership; evidence from a developing country," Transportation Research Part A: Policy and Practice, Elsevier, vol. 96(C), pages 90-100.
    18. Redding, Stephen & Nakajima, Kentaro & Miyauchi, Yuhei, 2021. "Consumption access and agglomeration: evidence from smartphone data," LSE Research Online Documents on Economics 114353, London School of Economics and Political Science, LSE Library.
    19. Ao, Yibin & Yang, Dujuan & Chen, Chuan & Wang, Yan, 2019. "Exploring the effects of the rural built environment on household car ownership after controlling for preference and attitude: Evidence from Sichuan, China," Journal of Transport Geography, Elsevier, vol. 74(C), pages 24-36.
    20. Ritter, Nolan & Vance, Colin, 2013. "Do fewer people mean fewer cars? Population decline and car ownership in Germany," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 50, pages 74-85.

    More about this item

    Keywords

    Residential parking cost; Car ownership; Semi-parametric regression; Automated vehicles;
    All these keywords.

    JEL classification:

    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise
    • R48 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government Pricing and Policy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:regeco:v:77:y:2019:i:c:p:276-288. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/regec .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.