Cities are becoming increasingly crowded. Keeping them livable and accessible is a major challenge. Cars, in particular, occupy a significant amount of the scarce urban space. That’s why municipalities aim to encourage residents and visitors to travel differently—by raising parking fees.
If you want to park in downtown Amsterdam (NL), you’ll pay €7.50 per hour, and rates are also rising in other neighborhoods. The Hague and Utrecht have similar plans. But will it work? Will it lead to fewer cars in the city?
In short, no. Higher parking fees for consumers won’t reduce traffic as long as nothing is done about delivery vehicles, business owners with exemptions allowing them to park for free on streets and sidewalks, or taxis endlessly circling the city center.
A Market Opportunity
There is no proven link between higher parking fees and less street traffic—quite the opposite. In the Netherlands, parking fees do not significantly impact parking behavior (such as the duration of a parking session).
More expensive parking might encourage “flash shopping” (shorter parking durations), increase the amount of time drivers spend searching for a spot (circling the area), and likely result in more people avoiding payment altogether. It’s also expected that more residents and visitors will opt for taxis instead.
Never underestimate the market, either. There are just as many parking spots in hotels and Q-Park garages as in paid street parking spaces. Will they start competing on price?
Parking apps like ParkMobile, ParkBee, and Yellowbrick—essentially the Airbnbs of private parking—are also expanding. They already offer many spots in residential areas and office buildings, which will only become more attractive. Parking is the new gold. The more expensive on-street parking becomes, the more private parking spaces will enter the market.
Perhaps a student-run valet driving service will emerge, circling the neighborhood to find you a spot. Or maybe your self-driving car will do it in the future. Once again, never underestimate the market—you won’t win against it.
Truly Car-Free?
Creating a low-car city center or residential neighborhood requires a comprehensive approach: reducing accessibility in certain areas (“superblocks”), charging fees for access and parking—including for residents and businesses—strict enforcement, regulating delivery traffic, significantly limiting exemptions, improving public transport, promoting cycling and walking, and, last but not least, implementing a well-structured taxi policy.
Walther Ploos van Amstel.