Parking pricing

In the U.S., an abundance of cheap parking encourages a lot of driving. It is estimated that 75% of employers provide free or sharply discounted parking, and in suburban areas, that number is up to 90%.

This free parking ignores the cost of real estate, construction, operation, maintenance, and other externalities like lighting, security, and air pollution.

Smart incentives encourage sustainable behaviors

Appropriate parking pricing encourages transit use and discourages unnecessary driving trips. It leads to a safer environment for pedestrians and cyclists. It also reduces greenhouse gases and criteria pollutants.

At EDF, we support wise parking pricing strategies that help better manage existing resources and reduce driving’s environmental impacts.

Parking cash out works for drivers, employers, and the environment

One smart way to encourage green commuting is parking cash out. Instead of receiving employer-paid parking at work, employees opt to walk, bike, or take public transportation and receive the cash that the employer would have spent on the parking space. In some cases, employees receive free transit passes in lieu of employer-paid parking, as well.

In a study of eight parking cash out programs in Southern California, single-occupancy commuting dropped on average by 17%, which translates to 516 pounds per employee of reduced carbon dioxide emissions annually. A similar study of seven companies in Minneapolis found that driving fell by 11% and public transit use increased by 47%.

Companies benefit too, as cash out reduces parking demand. This means that companies can resell unused parking spots for a higher price to meet market demand for parking.