Parking subsidies and travel choices: Assessing the evidence

This article reviews empirical studies of how employer-paid parking affects employees' travel choices. A strong effect is found: parking subsidies greatly increase solo driving. When employers reduce or remove parking subsidies, a significant number of solo drivers shift to carpools and/or transit. This conclusion is based on studies of parking subsidies in a variety of circumstances, including central city and suburban areas, private and public employers, and clerical and professional employees. Three measures are developed to compare changes in commute patterns: changes in the share of solo drivers. changes in the number of autos driven to work per 100 employees, and the parking price elasticity of demand for solo driving. The studies reviewed here show that 19 to 81 percent fewer employees drive to work alone when they pay for their own parking. Because 90 percent of American commuters who drive to work receive employer-paid parking, these findings are significant for designing transportation policies to reduce air pollution, traffic congestion, and energy consumption.     

A review of the impact of parking policy measures on travel demand

This paper reviews the empirical evidence relating to the impact of parking policy measures on the demand for parking and for travel. Disaggregate modal choice models, disaggregate parking location models and site‐specific studies of parking behaviour are examined. With regard to modal choice models, it is concluded that few studies deal adequately with parking factors, but that there is some support for the view that parking policy measures are a relatively important influence on modal choice. When parking location models are examined parking policy variables are shown to have a substantial impact on choice of parking location. With regard to site‐specific studies, the paper concludes that there is a great variation in the parking price elasticities quoted, which reflects partly the methodological problems associated with such studies. Suggestions to improve model specification are made.     

Estimating flight-level price elasticities using online airline data: A first step toward integrating pricing,demand, and revenue optimization

We estimate flight-level price elasticities using a database of online prices and seat map displays. In contrast to market-level and route-level elasticities reported in the literature, flight-level elasticities can forecast responses in demand due to day-to-day price fluctuations. Knowing how elasticities vary by flight and booking characteristics and in response to competitors’ pricing actions allows airlines to design better promotions. It also allows policy makers the ability to evaluate the impacts of proposed tax increases or time-of-day congestion pricing policies. Our elasticity results show how airlines can design optimal promotions by considering not only which departure dates should be targeted, but also which days of the week customers should be allowed to purchase. Additionally, we show how elasticities can be used by carriers to strategically match a subset of their competitors’ sale fares. Methodologically, we use an approach that corrects for price endogeneity; failure to do so results in biased estimates and incorrect pricing recommendations. Using an instrumental variable approach to address this problem we find a set of valid instruments that can be used in future studies of air travel demand. We conclude by describing how our approach contributes to the literature, by offering an approach to estimate flight-level demand elasticities that the research community needs as an input to more advanced optimization models that integrate demand forecasting, price optimization, and revenue optimization models.     

Elasticities of fuel and traffic demand and the direct rebound effects: An econometric estimation in the case of Norway

We estimate the elasticities of fuel and travel demand with respect to fuel prices and income in the case of Norway. Furthermore, we derive the direct rebound effects that explain the degree to which a fuel price increase is “offset” in the form of greater fuel use and/or travel due to improvements in vehicle fuel efficiency. For this purpose, we use and compare two alternative econometric approaches: the error correction model (ECM) and the dynamic model. Our initial assumption is that one should not be indifferent with respect to the approach used to derive elasticities. The data used are for the period 1980–2011. Our results indicate the following: (1) the dynamic model fits the data better than the ECM model does; (2) the estimated elasticities of fuel demand with respect to price and income are −0.26 and 0.06 in the short run and −0.36 and 0.09 in the long run. For travel demand, the respective elasticities are −0.11 and 0.06 in the short run and −0.24 and 0.13 in the long run, implying inelastic demands for fuel and travel demand; and (3) rebound effects indicate that 0.26% and 0.06% of fuel savings as a result of fuel price increase will be offset in the form of more fuel use in the short run and in the long run, respectively, if fuel efficiency increases by 1%. Our policy recommendations are that policies should not be indifferent to the methods used to derive elasticities. We contend that it is crucial to seriously consider rebound effects in policy making because basic elasticity estimates exaggerate the impact of fuel price increases.     

The impact of transportation demand management policies on commuting to college facilities: A case study at the University of Trieste,Italy

Universities, like other types of public and private institutions, when located in a city, have both positive and negative impacts on the area where they are situated. On the one hand, they contribute to the prestige of the area; on the other hand, they are large generators/attractors of traffic. The ability to successfully balance the pros and cons of the urban location of these large traffic-generating institutions is crucial for their success and for the livability of the city. In this paper this issue has been analyzed selecting as a representative case the University of Trieste.The aim of the research is to understand: (a) how mode choice decisions are made by the teaching and administrative staff and by the students at the various locations where academic activities take place, and (b) how they would be affected by 8 different transport management policies. It is found that changing the parking regulations (via the annual permit cost, the hourly parking fee, the number of parking spaces and the location of the parking lots) greatly influences mode choice in favor of bus use, especially for teaching and administrative staff and in the suburban locations. The students would be impacted by such changes only if an hourly parking tariff is introduced. The alternative approach of fully subsidizing the bus services would also have a large impact on bus ridership, affecting the mode choice in particular of the teaching staff and in the main university suburban sites.Since the implementation of these bus-favoring policies could face the opposition either of the university staff or of the bus company, two more balanced policy mixes were tested: the first one, increasing parking price and imposing new parking restrictions, would increase bus ridership by 19%; the second one, reducing both bus and parking subsidies, would increase bus ridership by 13%.     

Understanding parking decisions with a Bayesian network

In this paper, a Bayesian network is developed to investigate three intertwining parking decisions, namely parking period, parking location, and parking duration, and the impacts of a number of parking-related factors on these decisions. With parking information from Beijing, China in 2005, the structure and parameter of a Bayesian network were learnt by employing the K2 algorithm and Bayesian parameter estimation method respectively. The results show that the decision on how long to park follows that on where to park, and both of them are affected by the decision of when to park. This suggests that parking policies aimed at intervening in one specific parking decision may have an indirect influence on other parking decisions, which embraces an integrated view in the development of parking policies. The findings facilitate the development of measures for regulating parking behavior by identifying important contributing factors.     

Solving the User Optimum Privately Owned Automated Vehicles Assignment Problem (UO-POAVAP): A model to explore the impacts of self-driving vehicles on urban mobility

Interest in vehicle automation has been growing in recent years, especially with the very visible Google car project. Although full automation is not yet a reality there has been significant research on the impacts of self-driving vehicles on traffic flows, mainly on interurban roads. However, little attention has been given to what could happen to urban mobility when all vehicles are automated. In this paper we propose a new method to study how replacing privately owned conventional vehicles with automated ones affects traffic delays and parking demand in a city. The model solves what we designate as the User Optimum Privately Owned Automated Vehicles Assignment Problem (UO-POAVAP), which dynamically assigns family trips in their automated vehicles in an urban road network from a user equilibrium perspective where, in equilibrium, households with similar trips should have similar transport costs. Automation allows a vehicle to travel without passengers to satisfy multiple household trips and, if needed, to park itself in any of the network nodes to benefit from lower parking charges. Nonetheless, the empty trips can also represent added congestion in the network. The model was applied to a case study based on the city of Delft, the Netherlands. Several experiments were done, comparing scenarios where parking policies and value of travel time (VTT) are changed. The model shows good equilibrium convergence with a small difference between the general costs of traveling for similar families. We were able to conclude that vehicle automation reduces generalized transport costs, satisfies more trips by car and is associated with increased traffic congestion because empty vehicles have to be relocated. It is possible for a city to charge for all street parking and create free central parking lots that will keep total transport costs the same, or reduce them. However, this will add to congestion as traffic competes to access those central nodes. In a scenario where a lower VTT is experienced by the travelers, because of the added comfort of vehicle automation, the car mode share increases. Nevertheless this may help to reduce traffic congestion because some vehicles will reroute to satisfy trips which previously were not cost efficient to be done by car. Placing the free parking in the outskirts is less attractive due to the extra kilometers but with a lower VTT the same private vehicle demand would be attended with the advantage of freeing space in the city center.     

Review and meta-analysis of U.K. time elasticities of travel demand

In contrast with reviews of values of time and price elasticities, the literature contains little by way of detailed reviews of travel time based choice and demand elasticities. This paper reports the most extensive meta-analysis of time-based demand elasticities yet undertaken, supplemented with a review of literature not previously in the public domain. The meta-analysis is based upon 427 direct elasticities covering travel time, generalised journey time (GJT) and service headway and drawn from 69 UK studies. The elasticities are found to vary, as expected, across attributes, and quite strong effects have been detected according to distance. We provide interesting insights into the relationship between long and short run elasticities and elasticities obtained from static models and choice models based on actual and hypothetical preferences. Significantly, the results seem to indicate that the duration for the long run demand impact to work through depends upon the periodicity of the model estimated. There is little variation apparent by journey purpose, source of the evidence, nor over time or by region/flow type, whilst travel time elasticities for high speed rail are not materially different from conventional contexts. The findings support some official elasticity recommendations and conventions but challenge others, and can be used to provide time-based elasticities where none exist or to assess new empirical evidence.     

Stochastic Poisson game for an online decentralized and coordinated parking mechanism

This paper proposes a decentralized and coordinated online parking mechanism (DCPM), which seeks to reduce parking congestion at multiple parking facilities in a central business district (CBD) through guiding the parking decisions of a parking coordination group. To establish this DCPM, this study develops a stochastic Poisson game to model the competitions among parking vehicles en route at multiple parking facilities. The equilibrium condition for the proposed stochastic Poisson game is formulated through involving travelers’ parking choice behavior described by multinomial logit model. Furthermore, we prove that the stochastic Poisson game is a potential game with a unique equilibrium. A simultaneously updating distributed algorithm is developed to search the equilibrium solution of the DCPM. Its convergence is proved by both mathematical analysis and numerical experiments. The numerical experiments are conducted to test the efficiency of the DCPM, based on a real-world CBD covering Guicheng Community, Nanhai District at Foshan in China. The performance of the DCPM is compared to three greedy strategies following the nearest first, cheapest first, and least cruise first policies, respectively. The experimental results demonstrate that the DCPM significantly reduces cruise vehicles and average cruise distance per vehicle from all other three greedy strategies; the least cruise first strategy, which takes advantage of the real-time open spots information at parking facilities, performs better than the nearest first and the cheapest first strategies without the access to real-time information. The DCPM can further improve the benefit of the real-time information. Additionally, in terms of walking distance and parking cost, the DCPM provide a trade-off solution between the nearest first and the cheapest first strategies.     

System dynamics of urban traffic based on its parking-related-states

The urban parking and the urban traffic systems are essential components of the overall urban transportation structure. The short-term interactions between these two systems can be highly significant and influential to their individual performance. The urban parking system, for example, can affect the searching-for-parking traffic, influencing not only overall travel speeds in the network (traffic performance), but also total driven distance (environmental conditions). In turn, the traffic performance can also affect the time drivers spend searching for parking, and ultimately, parking usage. In this study, we propose a methodology to model macroscopically such interactions and evaluate their effects on urban congestion.The model is built on a matrix describing how, over time, vehicles in an urban area transition from one parking-related state to another. With this model it is possible to estimate, based on the traffic and parking demand as well as the parking supply, the amount of vehicles searching for parking, the amount of vehicles driving on the network but not searching for parking, and the amount of vehicles parked at any given time. More importantly, it is also possible to estimate the total (or average) time spent and distance driven within each of these states. Based on that, the model can be used to design and evaluate different parking policies, to improve (or optimize) the performance of both systems.A simple numerical example is provided to show possible applications of this type. Parking policies such as increasing parking supply or shortening the maximum parking duration allowed (i.e., time controls) are tested, and their effects on traffic are estimated. The preliminary results show that time control policies can alleviate the parking-caused traffic issues without the need for providing additional parking facilities. Results also show that parking policies that intend to reduce traffic delay may, at the same time, increase the driven distance and cause negative externalities. Hence, caution must be exercised and multiple traffic metrics should be evaluated before selecting these policies.Overall, this paper shows how the system dynamics of urban traffic, based on its parking-related-states, can be used to efficiently evaluate the urban traffic and parking systems macroscopically. The proposed model can be used to estimate both, how parking availability can affect traffic performance (e.g., average time searching for parking, number of cars searching for parking); and how different traffic conditions (e.g., travel speed, density in the system) can affect drivers ability to find parking. Moreover, the proposed model can be used to study multiple strategies or scenarios for traffic operations and control, transportation planning, land use planning, or parking management and operations.     

Fuel price elasticities for single-unit truck operations in the United States

This paper provides fuel price elasticity estimates for single-unit truck activity, where single-unit trucks are defined as vehicles on a single frame with either (1) at least two axles and six tires; or (2) a gross vehicle weight greater than 10,000 lb. Using data from 1980 to 2012, this paper applies first-difference and error correction models and finds that single-unit truck activity is sensitive to certain macroeconomic and infrastructure factors (gross domestic product, lane miles expansion, and housing construction), but is not sensitive to diesel fuel prices. These results suggest that fuel price elasticities of single unit truck activity are inelastic. These results may be used by policymakers in considering policies that have a direct impact on fuel prices, or policies whose effects may be equivalent to fuel price adjustments.     

The residential parking rent price elasticity of car ownership in Japan

By using household-level micro data captured through the National Survey of Family Income and Expenditure for 2004, this study evaluates the residential parking rent price elasticity of car ownership in Japan. It analyzes the number of cars owned by a household, using various attributes including expenditure for renting a parking space on a monthly basis. The estimation results derived from the IV-ordered probit model show that the absolute value of parking rent price elasticity of car ownership is, at most, 0.48, which is fairly small (i.e., inelastic). The elasticity value varies depending on city size; for megacities, elasticity is always negative for car ownership, whereas for middle-sized or small cities, towns, and villages, elasticity is positive for one-car ownership and negative for the ownership of more than one car. Hence, when the price of parking increases, some people may switch from more than one car to one car and some people in megacities may switch from one to zero cars. Indeed, the net effect of a price increase may be that non-car ownership increases in megacities and one-car ownership increases in other cities.     

Using demand elasticities from disaggregate mode choice models

Three of the most highly regarded disaggregate mode split models incorporate very different estimates of the responsiveness, or elasticity, of mode choice to changes in auto travel times and costs. These differences appear to be due in part to the varying specifications used by the model, and particularly whether certain variables (such as a dummy variable for CBD destinations or automobile ownership) are included in addition to the more traditional variables (such as travel time, cost, and household income). More research is needed on the implications of the theory of traveler choices for model specification and the effect of alternative, but theoretically justifiable, specifications on elasticity estimates. Until this research reduces our uncertainty about the elasticity of demand, analysts evaluating transportation policies should assess the sensitivity of their results to the range of plausible elasticities or models.     

Raising commuter parking prices — An empirical study

Recently, management of parking rates has been proposed as an effective policy option to ameliorate the adverse impacts of excessive commuter automobile use in urban areas. Parking price strategies have the potential for significantly altering travel behavior in favor of high occupancy vehicles, as well as reducing congestion, energy consumption and pollution. Unfortunately, however, a paucity of empirical evidence exists regarding the impacts of parking pricing policies on travel patterns. The recent attempt aimed at eliminating federal employee parking subsidies provided a unique opportunity to take a careful look at the impacts of commuter parking price increases.In November 1979, federal employees at many government facilities in Washington, DC, and other major cities began to pay one-half of nearby commercial parking rates for government-controlled parking spaces. This paper presents the impacts of the parking price increases on commuting behavior at a sample of 15 worksites in metropolitan Washington, DC, and discusses their short term planning and policy implications. A before and after with control group survey design monitored the effects on modal shifts, automobile occupancy, and parking behavior. The results showed that removing free parking and raising parking rates (from $10 to $32 per month) influenced some significant shifts to higher-occupancy modes, but that the shifts were not uniform in direction or magnitude across the sites. In addition, the study examined how locational, travel, and employee factors influenced the modal shifts.     

Modeling and optimization of multimodal urban networks with limited parking and dynamic pricing

Cruising-for-parking constraints mobility in urban networks. Car-users may have to cruise for on-street parking before reaching their destinations. The accessibility and the cost of parking significantly influence people's travel behavior (such as mode choice, or parking facility choice between on-street and garage). The cruising flow causes delays eventually to everyone, even users with destinations outside limited parking areas. It is therefore important to understand the impact of parking limitation on mobility, and to identify efficient parking policies for travel cost reduction. Most existing studies on parking fall short in reproducing the dynamic spatiotemporal features of traffic congestion in general, lack the treatment of dynamics of the cruising-for-parking phenomenon, or require detailed input data that are typically costly and difficult to collect. In this paper, we propose an aggregated and dynamic approach for modeling multimodal traffic with the treatment on parking, and utilize the approach to design dynamic parking pricing strategies. The proposed approach is based on the Macroscopic Fundamental Diagram (MFD), which can capture congestion dynamics at network-level for single-mode and bi-modal (car and bus) systems. A parsimonious parking model is integrated into the MFD-based multimodal modeling framework, where the dynamics of vehicular and passenger flows are considered with a change in the aggregated behavior (e.g. mode choice and parking facility choice) caused by cruising and congestion. Pricing strategies are developed with the objective of reducing congestion, as well as lowering the total travel cost of all users. A case study is carried out for a bi-modal city network with a congested downtown region. An elegant feedback dynamic parking pricing strategy can effectively reduce travel delay of cruising and the generic congestion. Remarkably, such strategy, which is applicable in real-time management with limited available data, is fairly as efficient as a dynamic pricing scheme obtained from system optimum conditions and a global optimization with full information about the future states of the system. Stackelberg equilibrium is also investigated in a competitive behavior between different parking facility operators. Policy indications on on-street storage capacity management and pricing are provided.     

Drivers’ parking location choice under uncertain parking availability and search times: A stated preference experiment

To assess parking pricing policies and parking information and reservation systems, it is essential to understand how drivers choose their parking location. A key aspect is how drivers’ behave towards uncertainties towards associated search times and finding a vacant parking spot. This study presents the results from a stated preference experiment on the choice behaviour of drivers, in light of these uncertainties. The attribute set was selected based on a literature review, and appended with the probabilities of finding a vacant parking spot upon arrival and after 8 min (and initially also after 4 min, but later dropped to reduce the survey complexity). Efficient Designs were used to create the survey design, where two rounds of pilot studies were conducted to estimate prior coefficients. Data was successfully collected from 397 respondents. Various random utility maximisation (RUM) choice models were estimated, including multinomial logit, nested logit, and mixed logit, as well as models accounting for panel effects. These model analyses show how drivers appear to accept spending time on searching for a vacant parking spot, where parking availability after 8 min ranks second most important factor in determining drivers’ parking decisions, whilst parking availability upon arrival ranks fourth. Furthermore, the inclusion of heterogeneity in preferences and inter-driver differences is found to increase the predictive power of the parking location choice model. The study concludes with an outlook of how these insights into drivers’ parking behaviour can be incorporated into traffic assignment models and used to support parking systems.     

Impact of fuel price on vehicle miles traveled (VMT): do the poor respond in the same way as the rich?

The effects of fuel price on travel demand for different income groups reveal the choices and constraints they are faced with. The first purpose of this study is to understand these underlying choices and constraints by examining the variation of fuel price elasticity of vehicle miles travelled (VMT) across income groups. On the other hand, the rebound effect—increase in VMT as a result of improvement in fuel efficiency may offset the negative effect of fuel price on VMT. The second purpose of this study is to compare the relative magnitudes of the fuel price elasticity of VMT and the rebound effect. A system of structural equations with VMT and fuel efficiency (MPG, miles per gallon) as endogenous variables is estimated for households at different income levels from 2009 National Household Travel Survey. Higher income households show greater fuel price elasticity than lower income households. Fuel price elasticities are found to be ?0.41 and ?0.35 for the two highest income groups, while an elasticity of ?0.24 for the lowest income group is identified. The rebound effect is found to be only significant for the lowest income households as 0.7. These findings suggest the potential ability of using fuel price as a tool to affect VMT. The study results also suggest possible negative consequences faced by lower income households given an increase in fuel price and call for more studies in this area.     

Transit passenger response: Short and long term elasticities using time series analysis

This paper investigates the effects of price and service changes on transit ridership. The concept of elasticity is introduced and the traditional methods for estimating elasticities are discussed. In this paper an extra dimension is added by investigating short and long term elasticities. Time series analysis, developed by Box and Jenkins is chosen for the analysis. The Box and Jenkins methodology is applied to a monthly time series of average weekday ridership on the Chicago Transit Authority (CTA) rail system. Four categories of explanatory variables are investigated: fare on the CTA rail system, service provided on the CTA rail system, cost of car trips and weather effects. The effects of gas prices and rail service were found to be significant; however the results indicate a twelve month delay before service changes influence ridership. The effect of transit fares was found to be insignificant, indicating that both the short and long term fare elasticities are zero.     

Effect of parking information on travelers' knowledge and behavior

In many urban centers the demand for parking increases sharply before Christmas mainly due to shopping activity — causing parking congestion. One way to ameliorate such congestion is by disseminating parking information. Informed drivers may divert to relatively under-utilized parking facilities relieving the pressure on congested facilities. The City of Nottingham in England tested a real-time parking information system designed to alleviate congestion in the City Center parking facilities. Real-time information was disseminated through the radio, while historical information regarding parking locations was disseminated through newspaper advertisements and leaflets. The objective of this study is to assess impacts of the parking information system on travelers' knowledge and decisions.Survey research was used to understand traveler response. Respondents' levels of knowledge regarding car parks were analyzed by developing Poisson regression models. Drivers were more likely to have greater knowledge of city center car parks if they used several information sources (radio broadcasts, newspaper advertisements or leaflets and word-of-mouth), were active seekers of parking information, and searched for parking rather than going directly to a parking facility. In addition, the study of behavior showed that drivers were more inclined to use the relatively under-utilized Park-and-Ride facilities instead of the city center car parks if they received parking information from Newspaper advertisements/leaflets. Overall, the parking information service in Nottingham was effective; it seems reasonable to establish such information dissemination and monitoring systems at parking facilities in other urban areas. Furthermore, to support informed travel and activity participation decisions, parking information should be integrated with traffic and transit information.     

Climate change mitigation and co-benefits of feasible transport demand policies in Beijing

Urban car transportation is a cause of climate change but is also associated with additional burdens such as traffic congestion and air pollution. Studies of external costs and potential impacts of travel demand management help to define policy instruments that mitigate the damaging impact of transportation. Here, we analyze different externalities of car transportation in Beijing and show that social costs induced by motorized transportation are equivalent to about 7.5–15.0% of Beijing’s GDP. Congestion and air pollution contribute the most with climate change costs being the most uncertain. We show that a road charge could not only address congestion but also has environmental benefits. The paper investigates the role of demand elasticities and demonstrates that joint demand and supply-side policies provide considerable synergies.