long-term <strong>parking</strong>. On-street <strong>parking</strong> shouldonly be for short-term <strong>parking</strong> and high prices,combined with time limits, need to ensure this.A flat <strong>parking</strong> fee per <strong>parking</strong> event incentivizesdrivers to park as long as possible to maximizethe sunk costs for <strong>parking</strong> there. It also encourageslong-term <strong>parking</strong> to occur on-street, whererelocating this <strong>parking</strong> demand to off-street <strong>parking</strong>places is preferred. The surveys show thereis a large share of long-term <strong>parking</strong> (>3 hours)on many streets. An hourly (or half-hourly) feewill encourage drivers to park only for as long asthey need, resulting a higher turnover and highervacancy of on-street <strong>parking</strong> spaces. More spaceswill be available to short-term parkers who comefor a quick purchase and leave immediately, soon-street <strong>parking</strong> spaces will see higher turnoverand generate more customers for local businesses.A low price for curb <strong>parking</strong> may sound good forbusiness, but it is not. Actual pricing of <strong>parking</strong> ofthe Development & Reform Committee’s <strong>parking</strong>price will mostly affect commuters, who do notwish to pay hourly on-street <strong>parking</strong> fees. Theywill look for off-street <strong>parking</strong> spaces instead,giving back on-street spaces to short-term users,or use public transport, walk or cycle instead.Current hourly <strong>parking</strong> fees of 3.75RMB/15minutes can be kept, although higher prices athigh-demand, central locations may be needed.After implementation of the proposed on-street<strong>parking</strong> system, occupancies need to be analyzedand <strong>parking</strong> prices adjusted to the new demand.On-street <strong>parking</strong> fees for residential <strong>parking</strong>are recommended to be increased, since heavilydiscounted monthly <strong>parking</strong> fees incentivize carownership, and therefore car use.It is recommended to consider implementingincremental <strong>parking</strong> fees in future, when thesystem has matured. This entails raising thehourly <strong>parking</strong> fee incrementally for every consecutivehour parked. For instance, the first hourof <strong>parking</strong> costs 15RMB, the second 20RMB, thethird 30RMB. This is an additional incentive fordrivers to park off-street for long-term <strong>parking</strong>,freeing up curb-side space.Finally, the Development & Reform Committeeis not the best organization to take decisions on<strong>parking</strong> prices. Because <strong>parking</strong> prices are soclosely related to transport, the CommunicationsCommission should have a much stronger voicein the <strong>parking</strong> price.6.3 Parking bans and timelimitsWhen implementing the proposed on-street<strong>parking</strong> system, streets need to be redesigned toaccommodate on-street <strong>parking</strong> spaces. On somestreets no on-street <strong>parking</strong> should be designedfor. Parking bans should be considered on streetswith a clear traffic function (as already is the caseThe chart above shows hourly <strong>parking</strong> fees for city centers in selected cities worldwide (in Chinese yuan/RMB).<strong>Beijing</strong> Parking, <strong>ITDP</strong>-<strong>China</strong> 1221 March 2015
No meters Meters Prices quadrupledWhen London implemented paid on-street <strong>parking</strong> at Grosvenor Square in 1958, its problems of double <strong>parking</strong>disappeared, with drivers (especially employees) <strong>parking</strong> in nearby streets where ample spaces were available.When prices for <strong>parking</strong> were quadrupled, the street had solved its <strong>parking</strong> problems and vacant spaces becameavailable.Source: Transport Research Laboratory, UKZurich, Antwerp, Vienna, and Madrid have on-street pricing schemes that charge amarginal cost increase with successive time to capture the increased marginal burdenof a car’s presence. The graph shows Zurich’s progressive charging scheme (1 CHF =6.29RMB). It is recommended to consider implementing a similar pricing scheme ifmany drivers still park for longer than 2 hours after implementation of the on-street<strong>parking</strong> system.Source: Gyarmati (2011), Sustainable traffic in Budapest), https://www.itdp.org/wp-content/uploads/2011/06/197<strong>Beijing</strong> Parking, <strong>ITDP</strong>-<strong>China</strong> 1231 March 2015
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