Employers commonly subsidise the parking costs of commuters who drive alone to work. Yet these subsidies lead to inefficient commuter mode choice. Two 1986 surveys of downtown los angeles commuters are described that add to what is known about parking subsidies. The surveys reveal that most downtown los angeles employers subsidise parking to a substantial degree. Many drive-alone commuters pay nothing for parking. These subsidies (and employer decisions regarding them) influence the decision-making process of commuters and distort the market for commuter parking spaces. The author discusses how knowledge about subsidies can clarify current issues in transportation and argues that subsidies must be considered in the development of transportation policies and programs. Finally, consideration is given to how research efforts should address the parking subsidy issue. For example, the degree and nature of the relation between parking subsidies and mode choice require further investigation. How sensitive are commuters to parking prices when the subsidised price is so low compared with other out-of-pocket and time costs? And how do employers make decisions about the parking and other transportation benefits they offer? In conclusion, a number of research areas are suggested for further investigation.
Abstract