Assessing the Impact of Parking Pricing !on Travel Demand and Behavior!

!Sustainable Transportation Seminar!

October 10, 2014

Wei-Shiuen Ng Postdoctoral Scholar Precourt Energy Efficiency Center Stanford University

Parking Pricing as a TDM Why parking pricing? •  A potentially effective transportation demand management •  Prices neither reflect the true cost of parking nor actual demand •  Uncertain impact on different social groups Why UC Berkeley? •  Wide range of employment types, income levels, and residential

locations •  Located in a region with several transportation alternatives •  Scarce land resources •  Capital and operation costs of parking are higher than parking

price, leading to an uneven distribution of parking cost •  Fixed cost annual parking permits

Current UC Berkeley Parking Permits

Source: Permit Rule Book, Department of Parking and Transportation, UC Berkeley, 2014.

More Parking Permits

Source: Permit Rule Book, Department of Parking and Transportation, UC Berkeley, 2014.

Daily Parking Hangtags

Source: Permit Rule Book, Department of Parking and Transportation, UC Berkeley, 2014.

The Ultimate Parking Permit

UC Berkeley Nobel Laureates Randy Schekman (Physiology or Medicine, 2013) and Saul Perlmutter (Physics, 2011).

Sources: gettyimages and Graduate Division, UC Berkeley (2014).

Current Studies Increasing parking pricing decreases parking demand •  San Francisco (Kulash, 1974) •  Portland (Dueker et al., 1998) •  Toronto (Gillen, 1977) •  Dublin (Kelly and Clinch, 2009) •  Sydney (Hensher and King, 2001) Removing parking subsidies decreases solo driving trips •  Los Angeles (Willson & Shoup, 1990) à 15-38% •  Portland (Bianco, 2000; Hess, 2001) à 60%

Methods and Data Collection

Case Selection •  UC Berkeley Employees (Staff and Faculty Only) One-on-one Interviews •  May - Sept 2013, n = 86 Focus Group Discussion Sessions •  Nov - Dec 2013, 10 sessions, n = 113 Transportation and Parking Survey (Revealed and Stated Preferences Data for Discrete Choice Analysis) •  Dec 2013, n = 4,188 (Response Rate ≈ 30%)

Transportation Mode Share

The “Other” category (four percent) includes being dropped off, traveling equal distances on more than one transportation mode, using a combination of different modes, and using campus shuttles or UC Berkeley shared vehicles to travel to campus.

Parking Preferences

The “Other” category (eight percent) includes parking at BART stations, the Lawrence Berkeley National Laboratory, parking with disabled person placards or plates either on or off campus, private parking lots under contract with UC Berkeley, and parking on campus Nobel laureate (NL) parking space.

“I park in the residential neighborhood every day and move my car three to four times a day. I use it as a form of exercise and like it.” !

“When I used to work part time, I would park far, far away and then I would walk to campus. I am sure other people do that too. That’s how I got my

exercise, 20 minutes of walking time. But now I am a full time employee, I got an F permit. Convenience is very important.”

“It’s cheaper to buy a parking permit than to get a ticket. I am anxious enough every day, so stacked parking or not, it’s good to have campus parking and not

worry. Remembering where your car is on the street is a problem too.”

“It would depend on the location. If it's in a sketchy neighborhood, then I would question if the discount (in parking pricing) is really worth it.”

- Various Staff Members

SP Parking Choice Question Example

SP Choice Experiment Design

Full factorial design = 82*3*2 = 384 profiles

Discrete Choice Analysis: Multinomial Logit Model Utility Function

Uin = utility of the ith alternative for the nth individual   βi = vector of unknown parameters (estimated from data) Xin = vector of known variables (include attributes and characteristics) εn = random utility component Example UPA = utility of Parking Option A αPA = alternative specific constant for Parking Option A βCost = parameter for the cost of Parking Option A βWKTM = parameter for walking time

Findings from SP Parking Choice Model (1): !Value of Walking Time

Value of Walking Time for Full Sample = 44% of Average Wage Rate

Value of Walking Time = Marginal Rate of Substitution (MRS) of Walking Time from Parking Location to Primary Workplace

Findings from SP Parking Choice Model (2): !Price Elasticity of Parking Demand

Findings from SP Parking Choice Model (3): !Transit and Pricing Incentives

Significant Attributes in Choice Set (p = 0.00) •  Parking fee refund for Parking Option A (0.09) •  Free transit pass for Parking Options A & B (0.28 & 0.47) •  BART pass dummy (0.14)

“Subsidizing transit would be great, like what students get for AC Transit.” (Occasional Driver, Biker)

  “If I have a transit pass, I will use the bus more because the bus passes my

house. I will use it every day.” (Occasional Driver, Carpooler)  

“I feel that UC could do more, $10 isn’t much.” (BART User)   

“I would use it once in a while for going home, but it’s not reliable enough for going to work.” (BART User)

  “Why is this not available for BART yet?” (Occasional Driver, Biker)

- Various Staff Members

Findings from SP Parking Choice Model (4): !Socioeconomic Factors Heterogeneity of Individuals •  University affiliation - Staff members are more likely to choose monthly parking options more than faculty •  Income (significant for all parking options) - Higher income households prefer monthly and daily parking options over hourly option •  Age - Older employees are more likely to choose unlimited monthly parking options than hourly parking option (0.07, p = 0.02)

Findings from SP Parking Choice Model (5): !Scheduling Factors

Work Schedule Factors •  Arrival Time – only significant for monthly parking options (0.31, p = 0.02; 0.27, p = 0.03 ) •  Departure Time – also only significant for monthly parking options

(-0.38, p = 0.00; -0.34, p = 0.01) •  Having a second office decreases utilities for all parking options •  The longer the time spent on campus (hours/day and days/week),

the more likely employees will choose to park monthly parking options over daily parking option

Parking Pricing Scenarios

Percentage Changes in Mode Share

Conclusions

Changes in pricing have to be coupled with other incentives “Free” off-campus parking locations serve as alternatives can influence impact of parking pricing Frequency of commute trip and duration of stay on campus affect parking location type Differences in value of walking time provide insights to optimal parking locations

Thank You!!

wsn@stanford.edu