Pricing curb parking: Differentiated parking fees or cash rewards?

Abstract

Parking price adjustment is an effective method for influencing curb parking choices, playing a crucial role in alleviating urban parking shortages and balancing uneven distribution. The government has extensively explored the implementation of differentiated parking fees and cash incentives for curb parking; however, few studies have investigated the effects of these policies on parking balance management. This study utilized a questionnaire survey to construct two multinomial logit models and examine the mechanisms behind drivers' choice behaviors. Taking the curb parking facilities in Yinzhou District, Ningbo as the case study area, the optimal dynamic pricing schemes for the two strategies were established, and their operational effectiveness was evaluated. The results show that parking cost, value of cash rewards, parking occupancy, and surrounding road conditions have a significant impact on curb parking choice behavior. Both strategies can effectively balance the utilization rate of curb parking space-time resources. The cash rewards strategy yields higher earnings compared to the differentiated parking fee strategy, but the latter is more conducive for reducing the occupancy during peak hours. The research findings of this study can provide insights and a theoretical foundation for real-time and proactive management of roadside parking.