The price elasticity of demand for parking:

Nowadays, parking pricing is a very useful tool for cities in order to have an efficient parking policy. This thesis aims to investigate the effect of tariff changes on parking demand in the city of Hoorn, The Netherlands. Price elasticities are used to analyze the sensitivity of demand in terms of parking duration and the amount of parkers. Internal and external factors are used to explain the results. For the on-­‐street locations, inelastic demand is found both in terms of parking duration and amount of parkers. For the garages, the demand is elastic in terms of parking duration. Contrary to the theory, elasticities larger than zero in terms of the amount of parkers are obtained for the garages. The overall conclusion is that the municipality of Hoorn should not be afraid to raise their tariffs, since the demand for parking is considered to be inelastic in general.