Determining the Parking Fee Using the Contingent Valuation Methodology
Publication: Journal of Urban Planning and Development
Volume 135, Issue 3
Abstract
Implementing new parking facilities amounts to an urban sustainable planning and development problem. A significant part of this problem is the estimation of the appropriate fee prior the new parking services go in operation. This paper describes the framework for estimating the value drivers place on parking facilities and uses a Greek tourist town as an illustrative case study. Alternative fee scenarios for establishing new parking facilities are formulated using the contingent valuation method with a double bound dichotomous choice question format for potential user’s willingness to pay (WTP) for these new services. Moreover, the WTP can be adopted as an effective tool to determine the parking fee in cases where demand-price curve and value of time are unknown. This approach helps also pinpoint and evaluate variables that influence the decision of potential users to pay for a parking fee. It relates WTP with the users’ socioeconomic characteristics, urban attitudes, the residence area, and the opinion of users concerning urban problems. These results are of use to urban planners, authorities, operators, investors, and survey designers when planning the establishment of new parking facilities.
Get full access to this article
View all available purchase options and get full access to this article.
References
Anderson, S. P., and de Palma, A. (2004). “The economics of pricing parking.” J. Urban Econ., 55(1), 1–20.
Arnott, R., and Rowse, J. (1999). “Modeling parking.” J. Urban Econ., 45(1), 97–124.
Bateman, I. J., et al. (2002). Economic valuation with stated preference techniques, Edward Elgar, Cheltenham, U.K., Northampton, Mass., 458.
Brownstone, D., Ghosh, A., Golob, T. F., Kazimi, C., and Van Amelsfort, D. (2003). “Drivers’ willingness-to-pay to reduce travel time: Evidence from the San Diego I-15 congestion pricing project.” Transp. Res., Part A: Policy Pract., 37(4), 373–387.
Button, K. (2006). “The political economy of parking charges in ‘first’ and ‘second-best’ worlds.” Transp. Policy, 13(6), 470–478.
Button, K., and Nijkamp, P. (1997). “Social change and sustainable transport.” J. Transp. Geogr., 5(3), 215–218.
Cameron, T. A. (1988). “A new paradigm for valuing non-market goods using referendum data: Maximum likelihood estimation by censored logistic regression.” J. Environ. Econom. Manage., 15(3), 355–379.
Carson, R. T. (2000). “Contingent valuation: A user’s guide.” Environ. Sci. Technol., 34(8), 1413–1418.
Carson, R. T., Flores, N. E., and Meade, N. F. (2001). “Contingent valuation: Controversies and evidence.” Environ. Resour. Econ., 19(2), 173–210.
Clegg, J., Smith, M., Xiang, Y., and Yarrow, R. (2001). “Bilevel programming applied to optimizing urban transportation.” Transp. Res., Part B: Methodol., 35(1), 41–70.
D’Acierno, L., Gallo, M., and Montella, B. (2006). “Optimization models for the urban parking pricing problem.” Transp. Policy, 13(1), 34–48.
Denant-Boèmont, L., and Petiot, R. (2003). “Information value and sequential decision-making in a transport setting: An experimental study.” Transp. Res., Part B: Methodol., 37(4), 365–386.
Dimitriou, D., Karlaftis, M., and Stathopoulos, A. (2006). “Public transport sampling for special events: A venue based approach.” Proc., Annual Transportation Research Board, TRB, Washington, D.C.
Ergun, S. (1971). “Development of a downtown parking model.” Highway Research Record 369, TRB, Washington, D.C., 118–134.
Ferrari, P. (1995). “Road pricing and network equilibrium.” Transp. Res., Part B: Methodol., 29(5), 357–372.
Ferrari, P. (1997). “Capacity constraints in urban transport networks.” Transp. Res., Part B: Methodol., 31(4), 291–301.
Ferrari, P. (1999). “A model of urban transport management.” Transp. Res., Part B: Methodol., 33(1), 43–61.
Gaber, S., Gaber, J., and Khattak, A. (2005). “Commercial truck parking analysis: Method to the madness or madness in the method?” J. Urban Plann. Dev., 131(1), 50–56.
Galilea, P., and Ortúzar, J. D. (2005). “Valuing noise level reductions in a residential location context.” Transp. Res. D, 10(4), 305–322.
Genius, M., Hatzaki, E., Kouromixelaki, E. M., Kouvakis, G., Nikiforaki, S., and Tsagarakis, K. P. (2008). “Evaluating consumers’ willingness to pay for improved potable water quality and quantity.” Water Resour. Manage., 22, 1825–1834.
Gillen, A. (1978). “Parking policy, parking location decisions, and distribution of congestion.” Transportation, 7(1), 69–81.
Hensher, D. A., and Goodwin, P. (2004). “Using values of travel time savings for toll roads: Avoiding some common errors.” Transp. Policy, 11(2), 171–181.
Hensher, D. A., and King, J. (2001). “Parking demand and responsiveness to supply, pricing, and location in the Sydney central business district.” Transp. Res., Part A: Policy Pract., 35(3), 177–196.
Hollander, Y., Prashker, J. N., and Mahalel, D. (2006). “Determining the desired amount of parking using game theory.” J. Urban Plann. Dev., 132(1), 53–61.
Huang, H. J. (2002). “Pricing and logit-based mode choice models of a transit and highway system with elastic demand.” Eur. J. Oper. Res., 140(3), 562–570.
Hyman, G., and Mayhew, L. (2002). “Optimizing the benefits of urban road user charging.” Transp. Policy, 9(3), 189–207.
Ignaccolo, M., Caprì, S., Giunta, U., and Inturri, G. (2006). “Discrete choice model for defining a parking-fee policy on island of Ortigia, Siracusa.” J. Urban Plann. Dev., 132(3), 147–155.
Khattak, F., and Polak, J. (1993). “Effect of parking information on travelers’ knowledge and behavior.” Transportation, 20(4), 373–393.
Klementschitz, R., Stark, J., and Sammer, G. (2007). “Integrating mobility management in land development planning with off-street parking regulations.” J. Urban Plann. Dev., 133(2), 107–113.
Lambe, T. A. (1996). “Driver choice of parking in the city.” Socio-Econ. Plan. Sci., 30(3), 207–219.
Lambe, T. A., Risens, M. I., and Stewardson, H. J. (1978). “Economic factors of investment in parking facilities.” Socioecon. Plann. Sci., 12, 121–128.
Lindberg, K., and Johnson, R. L. (1997). “The economic values of tourism’s social impacts.” Ann. Tourism Res., 24(1), 90–116.
Manville, M., and Shoup, D. (2005). “Parking, people, and cities.” J. Urban Plann. Dev., 131(4), 233–245.
Matsoukis, E. (1995). “Privatization of parking management in Greece.” Transp. Policy, 2(1), 25–31.
Nijland, H. A., Van Kempen, E. E. M. M., Van Wee, G. P., and Jabben, J. (2003). “Costs and benefits of noise abatement measures.” Transp. Policy, 10(2), 131–140.
Pucher, J. (1993). “Social and environmental cost of automobile driving.” Passenger Transport, 51(44), 1–5.
Rodier, C. J., and Johnston, R. A. (1997). “Incentives for local governments to implement travel demand management measures.” Transp. Res., Part A: Policy Pract., 31(4), 295–308.
Rodier, C. J., Johnston, R. A., and Abraham, J. E. (2002). “Heuristic policy analysis of regional land use, transit, and travel pricing scenarios using two urban models.” Transp. Res. D, 7(4), 243–254.
Sælensminde, K. (1999). “Stated choice valuation of urban traffic air pollution and noise.” Transp. Res. D, 4(1), 13–27.
Sælensminde, K. (2003). “Embedding effects in valuation of non-market goods.” Transp. Policy, 10(1), 59–72.
Soguel, N. C. (1995). “Costing the traffic barrier effect: A contingent valuation survey.” Environ. Resour. Econ., 6(3), 301–308.
Still, B., and Simmonds, D. (2000). “Parking restraint policy and urban vitality.” Transport. Rev., 20(3), 291–316.
Tam, M. L., and Lam, W. H. K. (2004). “Balance of car ownership under user demand and road network supply conditions—Case study in Hong Kong.” J. Urban Plann. Dev., 130(1), 24–36.
Topp, H. H. (1995). “A critical review of current illusions in traffic management and control.” Transp. Policy, 2(1), 33–42.
Tsamboulas, D. (2001). “Parking fare thresholds: A policy tool.” Transp. Policy, 8(2), 115–124.
Warren, R., and Kunczynski, Y. (2000). “Planning criteria for automated people movers: Defining the issues.” J. Urban Plann. Dev., 126(4), 166–188.
Wong, S. C., Tong, C. O., Lam, W. C. H., and Fung, R. Y. C. (2000). “Development of parking demand models in Hong Kong.” J. Urban Plann. Dev., 126(2), 55–74.
Xie, J., Shah, J. J., Capannelli, E., and Wang, H. (2004). “Phasing out polluting motorcycles in Bangkok: Policy design by using contingent valuation surveys.” Rep. No. 3402, World Bank, Data and Research, ⟨http://econ.worldbank.org⟩ (June 26, 2009).
Information & Authors
Information
Published In
Copyright
© 2009 ASCE.
History
Received: Dec 11, 2007
Accepted: Jan 21, 2009
Published online: Aug 14, 2009
Published in print: Sep 2009
Authors
Metrics & Citations
Metrics
Citations
Download citation
If you have the appropriate software installed, you can download article citation data to the citation manager of your choice. Simply select your manager software from the list below and click Download.