University of California Transportation Center

A multinomial logit model of downtown Los Angeles commuters is used to assess the effect of employer-paid parking on mode choice and parking demand. Employer-paid parking significantly increases the probability that an employee will drive to work alone. The best performing models predict that between 25 and 34 percent fewer automobiles are driven to work when workers have to pay to park, as compared to when they park free. This analysis provides support for the notion that public policies concerning traffic congestion, air pollution and energy use must address employer-paid parking.