TIANJIN STUDIO 2012 PRICING METHODS: HOW IS THIS TOOL USED? As the table below shows, there are a number of methods for actually charging someone to park. There are five criteria to evaluate pricing methods: 1) Capital Costs 2) Operating Costs 3) User Convenience
4) Price Adjustability 5) Enforce-ability
Capital Costs In many areas of China, the cost of labor is still lower than the cost of investing in hightech systems, so labor-intensive systems where attendants assist drivers may be a cost effective choice. Some high investment technologies also require major shifts in behavior, so the breadth of the change should be considered. For instance, a neighborhood developer may be able to implement an automatic vehicle identification system more easily than a city administration because they have a limited pool of users with whom they can easily share information.
Operating Costs Recurring operating costs are important to consider particularly when it comes to setting prices for drivers. Systems with high operating costs will need to recoup the costs through the prices they charge. Valet parking has high operating costs but the convenience to users is high enough that drivers are willing to pay the necessarily high rates. User Convenience Some drivers are willing to pay for convenience and others are willing to forsake convenience to save money. Dynamic parking pricing is often based on convenience. This can be applied across a neighborhood or city (spaces closer to the city center cost more) or within a single facility (spaces nearest the exit and entrance cost more). Price Adjustability For parking pricing to be “dynamic” the price has to change for different users. This may mean incorporating multiple pricing methods in the same facility. A garage could use a pass for residential users who pay on a monthly basis and use time-
Parking Pricing Methods2 Method A) Pass B) Time-Coded Tickets C) Mechanical Meters D) Electronic Meters E) Pay-and-display meters
Description
Capital Costs
Operating User Price Costs Convenience Adjustability Poor to Low Medium Moderate
Enforceability
Users purchase and display a pass (i.e. resident permit).
Low
Users purchase punch-card for a specific amount of time.
Low
Medium
Medium
Moderate
Good
High
High
Low
Poor
Poor
High
High
Medium
Good
Good
Medium
Medium
Medium
Good
Good
Users prepay a mechanical or electronic meter located at each space. Users prepay electronic meters which automatically reset when vehicles leave. Users prepay into a box with a slot for each space.
Good
Enforce-ability Illegal parking is a common problem in China’s cities. Enforcing a pricing scheme is very important to cultivating a culture in which drivers expect to pay for parking. If drivers think that they can get a free space by illegally parking in residential driveways or on sidewalks they will undermine the efficiency of the entire road and parking system. Policy and enforcement can be used to ensure that every parking facility is correctly priced and illegal parking is prevented.
CONCLUSIONS Personal vehicles will be a part of China’s future, but by utilizing dynamic parking pricing strategies Chinese cities can avoid the overabundance of parking that plagued many US cities in the 20th century. Dynamic pricing is a way to ensure that every parking facility is utilized efficiently and that drivers are aware of the value of the land on which they are parking. REFERENCES Cui Jia and Lu Hongyan. “Space race too costly for car owners.” Chinadaily.com
1
“Beijing hikes parking fees to ease traffic congestion.” news.xinhuanet.com, April 1, 2011.
2
Collins, Gabe and Andrew Erickson. “Dying for a Spot: China’s car ownership growth is driving a national parking space shortage.” China SignPost no.17, January 10, 2011.
3
F) Attendant
Users pay an attendant when entering or leaving parking lot.
High
High
High
Good
Good
G) Valet
Users pay an attendant who parks their car.
Low
High
High
Good
Good
H) Controlled Access
Users pay a machine when entering or leaving parking lot.
High
Medium
Medium
Good
Poor
I) Automatic Vehicle Identification
System automatically records vehicles entering and leaving a parking area.
High
Medium
High
Good
Good
J) Global Location Technology
Satellite-based system automatically tracks parking use and calculates parking fees.
High but declining
High but declining
High
Very Good
Good
Table 8.1: Parking pricing methods Source: adapted from the Victoria Transport Policy Institute’s Parking Pricing Implementation Guidelines 134
coded tickets to charge short-term users more flexible rates.
4
ibid.
World Bank. China 2030: Building a Modern, Harmonious, and Creative High-Income Society.” February 2012. http://www.worldbank.org/content/dam/ Worldbank/document/China-2030-complete.pdf 5
Todd Litman. “Parking Pricing Implementation Guidelines.” Victoria Transport Policy Institute. vtpi.org, March 1, 2011.