Estimating the price elasticity of demand for off-street parking in Hiroshima City, Japan
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Date
2024-05Type
- Journal Article
ETH Bibliography
yes
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Abstract
Existing evidence suggests that the demand for parking is inelastic. This study investigates the price elasticity of parking demand in the Japanese coin-parking market, which is characterized by near-free-market conditions. A field survey of parking prices and demand in an approximately 8 km2 area in the center of Hiroshima City was conducted. The prices per 10 min were collected from 949 parking lots, and occupancy rates were observed for 133 parking lots from afternoon to evening. The estimation results, using a Heckman-type sample selection model with instrumental variables, reveal that price elasticity ranged from –1.683 to –0.9971, which is higher than the estimates of previous studies in terms of absolute value. This difference can be attributed to the characteristics of the target area where alternative parking spaces and transportation options are readily available. Our results also indicate that parking operation companies have difficulty raising price in areas with high parking density due to competition, resulting in the increase in the attractiveness of automobiles relative to public transportation. Parking price would need to be controlled to manage urban traffic. Show more
Publication status
publishedExternal links
Journal / series
Transportation Research Part A: Policy and PracticeVolume
Pages / Article No.
Publisher
ElsevierSubject
Coin-parking; Price elasticity of demand; Sample selection; Instrumental variablesOrganisational unit
03521 - Axhausen, Kay W. (emeritus) / Axhausen, Kay W. (emeritus)
Notes
Funding: JSPS KAKENHI Grant Number 21H01454 and JoRAS by Center of Spatial Information Science, The University of TokyoMore
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