The sensitivity of on-street parking demand in response to price changes: A case study in Seattle, WA

This study investigates the sensitivity of on-street parking demand using the automatic transaction data from parking pay stations obtained before and after a parking rate change that was implemented in Seattle in early 2011. The parking rate implementation is based on performance-based pricing where rates are increased, decreased, or not changed in neighborhoods with occupancy levels higher than, lower than, or within the desired level. We calculated the price elasticity of on-street parking demand, or the percentage change in block-level occupancy in response to a change in pricing, modified by time of day and neighborhood characteristics. This study is the first one that calculates price elasticity by time of day for on-street parking demand on a block level in the U.S. context. This study is also the first one that empirically derives how neighborhood characteristics affect on-street parking demand in response to pricing. Moreover, this study looks into how pricing results in changes in parking turnover rates, parking duration and total revenue generated.