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Because demand was, on average, inelastic, the city could increase revenue by charging higher prices. Our findings suggest three ways to improve SF park : 1 refine the periods of operation, 2 shift from reaction to prediction in setting prices, and 3 end the abuse of disabled placards. Most meters stop operating at 6 pm, so anyone who arrives at 5 pm and pays for one hour can park all night. Drivers who park during the evening thus have an incentive to arrive during the last hour of meter operation while a few open spaces are still available.
One way to solve this problem is to operate the meters in the evening for as long as they are needed to achieve the optimal occupancy. Free parking after 6 pm is a holdover from the days when meters had one- or two-hour time limits to increase turnover during the daytime. Most businesses closed by 6 pm, so parking turnover was not needed in the evening. Today many businesses remain open after 6 pm, so the old rationale for free parking in the evening no longer applies.
The purpose of metering in the evening is to prevent shortages, not to create turnover. Because the occupancy sensors and parking meters are already in place for the pilot program, it seems unwise to cease operating at 6 pm simply because the old meters did. Nevertheless, more revenue can come from installing more meters and extending meter hours. The wide range of occupancy changes after each price change shows that many factors other than prices affect parking demand. Abuse of disabled parking placards helps explain why occupancy does not reliably respond to price changes.
Because California allows all cars with disabled placards to park free for an unlimited time at parking meters, higher prices for curb parking increase the temptation to misuse disabled placards to save money. Higher prices at meters may therefore drive out paying parkers and make more spaces available for placard abusers. If so, disabled placard abuse will reduce the price elasticity of demand for curb parking.
Placard abuse is already rampant in California.
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A survey of several blocks in downtown Los Angeles in , for example, found that cars with disabled placards occupied most of the curb spaces most of the time. For five hours of the day, cars with placards occupied all the spaces on one block. Drivers using disabled placards were often seen carrying heavy loads between their cars and the adjacent businesses. Reforms in other states show how California can prevent placard abuse at parking meters. In , Michigan adopted a two-tier placard system that takes into account different levels of disability.
Drivers with severe disabilities receive special placards allowing them to park free at meters. Drivers with less severe disabilities receive ordinary placards and must pay at meters. Before this reform, Michigan had issued , disabled parking placards allowing all users to park free at meters. After the two-tier reform, only 10, people 2 percent of the previous placard holders applied for the special placards that allow free parking at meters.
Enforcement is simple because any able-bodied driver who misuses the distinctive severely-disabled placard is conspicuously violating the law. Illinois adopted a similar two-tier placard law in How will ending placard abuse affect SF park? If reform reduces placard abuse at meters, more spaces will open up for paying parkers. The lower prices, higher revenue, and greater availability of curb spaces will benefit almost everyone except placard abusers.
Los Angeles has already adopted a similar program called LA Express Park, and other cities are watching the results. After drivers see that prices can decline as well as increase, they may appreciate the availability of open curb spaces and learn to use the pricing information to optimize their parking choices for each trip.
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