Goal of paid parking

Thursday, 11 February 2016

by: Qurius

The goal of paid parking is to ensure there is always some parking available for motorists willing to pay the associated price and in the process reduce congestion by sharply cutting the number of drivers on the street who are searching for spots at any one time.

But as with most paid parking experiments, they face serious opposition, especially in residential neighborhoods yet to have meters. Many people, after all, resent the very notion of paying for parking.

One way or another, though, someone always pays, often indirectly, in the form of higher prices for something else. Moreover, the enormous amounts of land and structures needed for parking almost guarantee that mispricing parking spaces will have substantial consequences on economic efficiency and societal welfare.

Adapted from an article from the Milken Institute, by Eren Inci, an associate professor of economics at Sabanci University in Istanbul.