Pricing parking space

From the San Francisco Chronicle we learn of an idea to micromanage San Francisco's scarce parking spaces. Congestion pricing applied to parking. The newspaper reports

As SFpark [a pilot project intended to test changes to the way the city manages parking at street meters and in city-owned parking lots] is envisioned, parking rates would be adjusted based on time of day, day of week and duration of stay. People would be able to pay not just with coins, but with credit cards, prepaid debit cards and even by cell phone. If a meter is set to expire, a text message could be sent to the driver. More time could be purchased remotely.

People also would be able to check parking availability before arriving at their destination via the Internet, handheld devices such as BlackBerrys, or cell phone. Sensors would be embedded in the asphalt to keep track of when a parking spot is empty.

Later the article says

Under the program, which will focus on 10 neighborhoods, the city will adjust hourly parking rates based on demand - the price will go up when spaces are scarce and go down when plenty are available.

and

SFpark won't stop at tweaking parking rates. It also will adjust time limits. Drivers, for instance, may be allowed to park for no more than an hour in a particular neighborhood commercial district during the day, when shopkeepers benefit from high turnover, but may be able to park longer at night, so they can linger at a restaurant or catch a show. Hours of meter operation might be expanded.

An interesting idea worth watching to see how it works in practice. For comparison some areas will be designated as so-called control areas; rates and regulations there will remain as they are now. It will interesting to see how the new parking restrictions and prices in a given neighbourhood influence parking in adjacent areas. Will we see more people walking another few blocks if they can spend less for parking? Will they pay a premium if they can park in front of their favourite restaurant or shop? What will be the unintended consequences of the changes?

We would expect to see that pricing this scare resource will lead to a more efficient use of it.

(HT: Greg Mankiw)