Paid parking is the recommended policy tool by economists to deal with excess demand for street parking. However, we … residents have political power and usually vote against paid parking when it is detrimental to residents. Hence, in our analysis …, we take into account that residents receive residential parking permits which provides political support for paid parking …

We examine the effect of citywide parking policy on parking and traffic demand. Using a large increase in on …-street parking prices for the city of Amsterdam, we show that the policy caused a substantial drop in on-street parking demand, which … is not offset by an increase in off-street demand. The overall reduction in parking demand implies a 2% - 3% reduction in …