We estimate welfare losses of policies that provide on-street parking permits to residents almost free of charge in Dutch shopping districts that are predominantly downtown. Our empirical results indicate that parking supply is far from perfectly price elastic, implying that there are substantial welfare losses related to underpriced parking permits. Our results suggest that the provision of residential parking permits in downtown shopping districts induces a yearly welfare loss of about €275 per permit, which is about 15% of the supply cost of a parking place.

Deadweight loss, Parking supply, Residential parking permit
dx.doi.org/10.1016/j.regsciurbeco.2013.11.003, hdl.handle.net/1765/89154
Regional Science and Urban Economics
Erasmus School of Economics

Van Ommeren, J, de Groote, J, & Mingardo, G. (2014). Residential parking permits and parking supply. Regional Science and Urban Economics, 45(1), 33–44. doi:10.1016/j.regsciurbeco.2013.11.003