Biography
Jonas Eliasson is Director of Transport Accessibility at the Swedish National Transport Administration, professor of transport systems at Linköping university and chair of the Civil Engineering division of the Royal Academy of Engineering Sciences. He was Director of the Stockholm City Transportation Administration 2016-2019 and professor of transport systems analysis at the Royal Institute of Technology (KTH) 2007-2016.
His research interests focus on transport policy design and evaluation, including areas such as cost-benefit analysis, transport pricing, railway capacity allocation, transport demand modeling, congestion charges, decision making in the transport sector, public and political acceptability of transport policies, and valuations of travel time and reliability. Prof. Eliasson is among the world’s most cited academics in the transport economics field, and is a member of several scientific committees and editorial boards.
Prof. Eliasson also has a long involvement in analyzing, developing and applying transport policies and appraisal methodologies. He has been engaged as expert advisor to a large number of urban, regional and national governments around the world regarding strategic transportation issues, often involving sustainable transport planning, transport pricing and social and economic appraisal. He directed the design and evaluation of the Stockholm congestion pricing system, in operation since 2006, and has subsequently been heavily involved with its evaluation and redesign, as well as the design and evaluation of the Gothenburg congestion pricing system, in operation since 2013. In 2016-2019 he was Director of the Stockholm City Transport Administration (with overall responsibility for transportation and infrastructure in Stockholm City), and from 2019 he is Director of Transport Accessibility at the National Transport Administration (with overall responsibility for strategic evaluation of national transport accessibility).
Abstract
Parking pricing and regulation is a powerful and nearly ubiquitous tool for urban transport planning. Due to its technical simplicity, it is a much more common policy instrument than more advanced transport pricing instruments such as congestion charges or distance-based taxes. Despite this, a broader literature on the theory and empirical effects of parking pricing has developed only relatively recently – the last decade or two.
This presentation focuses on the question of welfare analysis of parking charges and determining optimal parking charges. In a recent working paper, we develop a model than can be used for empirical evaluation of the social costs and benefits of street parking charges. From the model, we derive an expression for optimal parking charges and occupancy levels. The central insight is that optimal parking charges balance drivers’ search costs against the lost value of unused parking spaces. Contrary to commonly used rules-of-thumb, optimal occupancy levels are not constant; they depend on parking turnover rates and parking search costs (including possible external costs from car traffic). In contexts with high turnover and high search costs (such as city centers), optimal occupancy rates are higher than in contexts with low turnover and low search costs (such as residential suburbs).
We demonstrate the model’s applicability in a case study from Stockholm, where parking charges were recently introduced in suburban residential areas. The charges had considerable effects on parking demand, but our analysis shows that the overall welfare effect was a substantial welfare loss. Using parameters and demand functions estimated from the case study, we calculate optimal parking charges and occupancy levels, and show that the welfare loss arises because the introduced charges were considerably higher than the optimal ones.
(The presentation is based on the paper Eliasson & Börjesson (2022) Costs and benefits of parking charges in residential areas)