1 Department of Transport, Technical University of Denmark2 Transport policy and behaviour, Department of Transport, Technical University of Denmark3 Department of Management Engineering, Technical University of Denmark4 Ecole Normale Superieure de Cachan5 Ecole Normale Superieure de Cachan
We consider commuting in a congested urban area. While an efficient time-varying toll may eliminate queuing, a toll may not be politically feasible. We study the benefit of a substitute: a parking fee at the workplace. An optimal time-varying parking fee is charged at zero rate when there is queuing and eliminates queuing when the rate is non-zero. Within certain limits, inability to charge some drivers for parking does not reduce the potential welfare gain. Drivers who cannot be charged travel when there is queuing. In some cases, interaction between morning and evening commutes can be exploited to remove queuing completely.
Journal of Public Economics, 2013, Vol 105, p. 106-115