Saturday, June 28, 2014

Why Free Parking is Bad for Everyone

Over the past century, we've come to regard parking as a basic public good that should be freely shared — partly because of the sheer historical accident that parking meters didn't come along until the 1930s, a few decades after the car.

"By then, the custom of free parking was well-established," Shoup says. "It's hard to start charging people for something that the government owns and had been free." Consequently, parking is still free, he calculates, for 99 percent of all car trips made in the country.

But a parking spot, unlike things we normally consider to be public goods, is finite. It can only be used by a one car at a time. So if we let the market set the price, in cities, it'd certainly go above zero — and there's not really any compelling reason why it alone should be kept free. "We pay for everything else about our cars — the car itself, the gas, the tires, the insurance," Shoup says. "Why is it that parking should be different?"

One counterexample you might point to are roads, which are ostensibly free public goods. But there are mechanisms in place, such as the gas tax, that try to ensure roads are largely paid for by automobile users, in proportion to their use of it. The gas tax system may be broken, but it still reflects the idea that car drivers should pay for the roads.

When we find an open spot on the street, and there's no meter, it seems free — but it too is the result of government spending. The cost of the land, pavement, street cleaning, and other services related to free parking spots come directly out of tax dollars (usually municipal or state funding sources). Each on-street parking space is estimated to cost around $1,750 to build and $400 to maintain annually.

"That parking doesn't just come out of thin air," Shoup says. "So this means people who don't own cars pay for other peoples' parking. Every time you walk somewhere, or ride a bike, or take a bus, you're getting shafted."

All our free street parking also leads to secondary problem: most city governments (with the exception of New York, San Francisco, and a few other dense cities) require all new buildings to include specified large numbers of added parking spaces — partly because otherwise, the free street parking would be swamped by new residents. "In most of the country, you can't build a new apartment building without two parking spaces per unit," Shoup says.

This too costs money. In Washington DC, the underground spots many developers build to comply with these minimum requirements cost between $30,000 and $50,000 each. Whether they're constructed along with apartment buildings or shopping complexes, this cost ultimately gets passed along to consumers, in the form of rent or the price of goods.

"Wherever you go — a grocery store, say — a little bit of the money you pay for products is siphoned away to pay for parking," Shoup says. "My idea is simple: if somebody doesn't have a car, they shouldn't have to pay for parking."

If just the way we paid for free parking were unfair, it might not be all that big of a deal. But there are a few totally unrelated and negative consequences of keeping parking free.

by Joseph Stromberg, Vox |  Read more:
Image: City Lab