The residential parking rent price elasticity of car ownership in Japan

Hajime Seya, Kumiko Nakamichi, Yoshiki Yamagata

Research output: Contribution to journalArticlepeer-review

7 Citations (Scopus)

Abstract

By using household-level micro data captured through the National Survey of Family Income and Expenditure for 2004, this study evaluates the residential parking rent price elasticity of car ownership in Japan. It analyzes the number of cars owned by a household, using various attributes including expenditure for renting a parking space on a monthly basis. The estimation results derived from the IV-ordered probit model show that the absolute value of parking rent price elasticity of car ownership is, at most, 0.48, which is fairly small (i.e., inelastic). The elasticity value varies depending on city size; for megacities, elasticity is always negative for car ownership, whereas for middle-sized or small cities, towns, and villages, elasticity is positive for one-car ownership and negative for the ownership of more than one car. Hence, when the price of parking increases, some people may switch from more than one car to one car and some people in megacities may switch from one to zero cars. Indeed, the net effect of a price increase may be that non-car ownership increases in megacities and one-car ownership increases in other cities.

Original languageEnglish
Pages (from-to)123-134
Number of pages12
JournalTransportation Research, Part A: Policy and Practice
Volume85
DOIs
Publication statusPublished - 2016 Mar 1
Externally publishedYes

Keywords

  • Car ownership
  • Elasticity
  • IV-ordered probit model
  • Japan
  • Micro data
  • Residential parking rent price

ASJC Scopus subject areas

  • Civil and Structural Engineering
  • Transportation
  • Management Science and Operations Research

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