Already in the 1920's, it was recognised that 'road pricing' offers the first best solution for road traffic optimisation. Still, it is very unlikely that this instrument will soon be widely used. Both transport economists and policy makers show growing interest in alternatives to road pricing. Parking policies constitute one of the suggested alternatives. In this paper, an economic model is presented which allows for a closer inspection of the pro's and cons of parking policies. Under certain circumstances, parking policies offer an acceptable alternative to road pricing. Special attention is paid to the differences between the use of parking fees and physical restrictions on parking space supply. Despite the possibilities of parking policies in traffic regulation, road pricing will remain the first best instrument on theoretical grounds.
Samenvatting