The High Cost of Permit Parking

37 Pages Posted: 27 Jun 2022

See all articles by Karolina Kneller

Karolina Kneller

Leiden University - Leiden University College

David Zetland

Leiden University - Leiden University College

Date Written: June 19, 2022

Abstract

In 1992, Amsterdam's voters pushed for a more-aggressive autoluw (fewer cars) policy, but progress has been slow. Hourly parking tariffs are the highest in the country, but car registrations are higher than in 1992. We explore the gap between promise and results by making a spatial comparison of parking prices (set by bureaucrats) to living prices (set by market forces). We assume that a balance between supply and demand for open spaces will result in a relatively stable ratio of these prices across the city. We do not find such stability. The normalized price of parking permits (for residents) is much lower than the normalized prices of living space or hourly parking (for visitors). Cheap permits encourage car ownership, which takes public space away from other uses. Our recommendation, in line with that of Donald Shoup (an inspiration for this study), is to increase the price of permits and let neighborhoods spend the proceeds on improving their streets.

Keywords: parking, public spaces, opportunity cost, urban congestion

JEL Classification: R41, R42, R48, R52, H23, H44, H71, D61

Suggested Citation

Kneller, Karolina and Zetland, David, The High Cost of Permit Parking (June 19, 2022). Available at SSRN: https://ssrn.com/abstract=4140629 or http://dx.doi.org/10.2139/ssrn.4140629

Karolina Kneller

Leiden University - Leiden University College ( email )

P.O. Box 13228
Den Haag, 2501EE
Netherlands

David Zetland (Contact Author)

Leiden University - Leiden University College ( email )

P.O. Box 13228
Den Haag, 2501EE
Netherlands

HOME PAGE: http://https://www.universiteitleiden.nl/en/staffmembers/david-zetland#tab-1

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