To what extent does Cashing Out Employer-Paid Parking help to reduce car use?

The employer-paid parking cashing out policy has received numerous positive as well as negative results when assessing its efficiency at reducing congestion. This paper conducted a large qualitative research on previous works studying the effect of the cashing out policy. This research additionally studied the efficiency and effect of the congestion pricing scheme, as well as the carpooling scheme, in order to analyse the usefulness of combining these TDM measures. It was shown that, employer-paid parking casing out is successful in reducing the amount of singular-vehicle used for work related purposes and could be used in combination with carpool to increase its efficiency even further. The main findings show that there are four important factors that need to be taken into account when implementing the cashing out policy. The factors are, (1) the location of the firm within the city, (2) the financial size of the firm, (3) a combined use of incentives and disincentives and lastly (4), the legal and fiscal policies of the country. With these factors in mind, the implementation of the cashing out policy could lead to a significant reduction in congestion in the morning rush hours and the negative externalities related to it.