Summary

Parking charges are financial charges paid by motorists for the use of parking spaces, either in dedicated car parks or in identified on-street parking bays.  They can be used as a means of fiscal demand management, with an aim of reducing pressure on limited parking spaces, or as means of raising revenue which can offset costs of providing parking space, or as a means of attempting to mitigate external costs of motor traffic.  Uniquely among parking control measures, they enable demand to be kept below the supply of parking space, thus reducing time spent searching. Despite their potential role in reducing a range of problems associated with high traffic volumes, parking charges are often politically contentious, and there can be a reluctance to implement the measure.  A major component of the political reluctance to use parking charges is a fear that to do so will harm competitive advantage of a city. However this concern is not well supported by evidence (Marsden 2006).