The Price Mechanism Analysis of Parking Fees on Economic Perspective

Abstract

Growing number of vehicles brings sever negative external effects to cities such as traffic congestion and tail gas pollution, especially to big cities. However it is the tail gas pollution which is a significant factor for the formation of haze. Gradually serious congestion and haze problems force us to face and solve the contradiction between growing demand for motor vehicles and the scarce resources of urban traffic. This paper analyzes residents’ tenure and travel vehicle cost by constructing the parking price model and the linkage mechanism of parking fees-vehicle cost from the vehicle and complementary relationship of parking space in economic perspective. And this condition will affect people’s desire of shopping and vehicle travel indirectly. From the consumer perspective, it will affect their choice to effectively control of motor vehicle growth, decrease usage amount, and promote the allocation of urban transportation resources. Finally, we can get a policy enlightenment that city managers can use price mechanism of parking fees to improve the efficiency of the urban traffic from several aspects, like speeding up the property rights reform bus, establishing adjustment system of dynamic price, implementing the policy of differentiation parking, optimizing the bus system and appropriately limiting parking supply.