The high cost of permit parking

That’s the title of a new paper that I just uploaded on SSRN.

The paper is “interesting” for its critique of weaknesses in Amsterdam’s parking policies, which the city is (perhaps unjustly) famous for.

It’s also interesting for the “ratio” method of comparing market and bureaucratic prices, to see if they are in balance.

I am definitely looking for feedback/corrections/advice on the paper. please forward to anyone who may have an interest!

The high cost of permit parking” (with Karolina Kneller)

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.

*one-handedly 😉

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Author: David Zetland

I'm a political-economist from California who now lives in Amsterdam.

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