Parking Occupancy and External Walking Costs in Residential Parking Areas

We estimate the effect of parking occupancy on distances walked between parking and residential locations in Amsterdam. Using data from scanner cars, we show that walking distances only increase when the occupancy rate exceeds 85 per cent. However, the marginal effect of occupancy on walking beyond 85 per cent is limited: every parker imposes 8 m on each subsequent parker. Our analysis suggests it is optimal to have almost all parking spaces occupied late in the evening when few residents aim to park. Our result has important consequences for policy makers who use residential parking permits to prevent cruising for parking.