This chapter provides insights on how transport pricing policy and transport prices in general, and parking prices and parking availability in particular, influence travel mode choices, urban structure and urban form. In particular, the chapter focuses on the theoretical impacts of first-best and second-best pricing on the location of jobs and residences, city size and land use arrangements in the context of congested road traffic in both monocentric and non-monocentric settings.
In addition, the chapter presents a simple simulation-based two-period, perfect foresight, spatial general equilibrium model that includes economic activity growth, vacant land in the downtown area, alternative travel modes, traffic congestion and externalities from temporary uses on vacant land awaiting development. This model is a first step for future work aiming to examining the interplay between traffic congestion and urban vacant land, which has been overlooked in past general equilibrium models.
Finally, the chapter revisits the literature on pricing of parking and urban form, exploring the interconnections between parking prices, parking supply, mode choice and city size. Graphical analyses are also used to discuss the theoretical effects of two widely implemented parking practices, minimum off-street parking requirements (zoning regulation) and employer paid-parking (transport subsidy at work) on land consumption and use, car use and suburbanization levels.
While a review of empirical contributions and real-world applications of congestion pricing are beyond the scope of this chapter, when appropriate and for illustrative purposes most presented evidence is based on the cases of Los Angeles County and its cities, USA.
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