A Model for Estimation of the Demand for On-street Parking

Albert Gragera, Jesper Hybel Pedersen*, Edith Madsen, Ismir Mulalic

*Corresponding author for this work

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This paper presents a stylised econometric model for the demand for on-street parking with focus on the estimation of the elasticity of demand concerning the full cost of parking. The full cost of parking consists of a parking fee and the cost of searching for a vacant parking space (cruising). The cost of cruising is usually unobserved. Ignoring this issue implies a downward bias of the elasticity of demand for the total cost of parking since the cost of cruising depends on the number of cars parked. We demonstrate that, even when the cost of cruising is unobserved, the demand elasticity can be identified by extending the econometric model to include the spatial interaction between the parking facilities. We illustrate the model with on-street parking data from Copenhagen and find indications of a somewhat greater parking demand elasticity than is usually reported in the literature.
Original languageEnglish
Article number100231
JournalEconomics of Transportation
Number of pages12
Publication statusPublished - Dec 2021


  • On-street parking
  • Demand estimation
  • Cruising-for-parking

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