ABSTRACT
Informal parking markets operating outside the regulated system fill a market niche that is hard to serve by formal means. If curb parking is free, entrepreneurs will find ways to create informal markets that serve drivers who are willing to pay for convenience. These informal markets respond to the problems caused almost entirely by free curb parking. Informal parking on sidewalks may seem to be only a local issue, but the United States Supreme Court ruled in 2003 that the Americans with disabilities Act applies to sidewalks. The large stadium crowds have created an informal market for off-street parking. A formal market for on-street parking will reduce traffic congestion, air pollution, and greenhouse gas emissions, and will generate ample revenue to pay for neighborhood public services. The shortage of free curb parking is not merely a problem, however. It is also an opportunity to create a formal market with fair prices that efficiently allocate land for parking.
