Parking pain (2)
Thursday, 31 August 2017
Generally, off-street parking rates reflect local market conditions and central locations in major cities of commercial, political or cultural significance.
Similarly, local political and policy considerations generally dictate on-street parking rates with many cities favouring relatively high on-street rates to encourage high turnover (of visitors) and to support local business activity.
As motorists can therefore do little to avoid these parking charges, parking pain is about the indirect costs of parking (the cost of searching for parking, paying for additional unwanted parking time and parking fines).
The costs are borne by the motorists through their search for parking and include the value of opportunity cost of wasted time plus the additional fuel cost.
The value of time depends upon the opportunity cost of that time i.e. what the motorist should have been doing. Business-related travel is more valuable than commuting time, which in turn is more valuable than leisure time.
Value of time
Fuel consumption is estimated at 0.4747 gallons consumed per hour in congestion.
An extract from INRIX Research The Impact of Parking Pain