In many Australian cities an attempt has been made to regulate levels of parking by controlling levels of on- and off-street parking. The dominant trend has been to heavily restrict on-street parking but to keep that which is available priced at relatively low levels. The resulting excess demands are rationed primarily by restrictions on the length of time that a spot can be occupied and by means of restrictions on the type of vehicle that can be parked such as residency permits. Privately-owned off-street parking has been encouraged as a more higher-priced alternative to on-street parking. A strongly-held policy objective is to discourage long-term parking. Continue reading Parking economics
Background. Traffic accident costs are a significant component of total road transport costs.
I have been examining proposals for introducing distance-based car insurance charges as a way of addressing traffic accident issues as well as environmental externalities associated with road use. There are arguments for utilising per kilometre (km) insurance charges rather than lump-sum annual fees. This is consistent with the principal that prices should reflect costs. Such charges more accurately reflect the risks of traffic accidents than do risk-adjusted fixed charges since they directly limit distances travelled. Spinoff benefits of such measures include reduced congestion and local pollution.
Per km charges could be imposed, in states such as Victoria, by modifying the Transport Accident Charge (TAC) that is levied as a compulsory component of the annual vehicle registration charge to cover third-person damages. The overall registration charge could be based on a per km charge that is both driver and vehicle specific. Political objections to the scheme could be eliminated by offering motorists the chance to stick with a higher fixed charge or utilising the per km charging. Comprehensive insurance covering personal accident costs and property damage costs could be provided privately on the same basis. Increasingly insurance markets are offering such options.
Continue reading Traffic accident externalities
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