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Parking Cash Out | Santa Monica, CA

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Parking Cash Out | Santa Monica, CA

Free parking is the largest fringe benefit provided to employees in the nation, and it encourages commuters to drive alone to work, says Professor Donald Shoup of University of California, Los Angeles (UCLA). Shoup’s internationally renowned work (as well as other studies) have shown cash allowances in lieu of subsidized parking encourage commuters to get to work in ways other than driving alone. For example, a 1997 study of eight firms found that just one year after parking cash out was introduced, drive-alone commutes dropped by 13%, with employees switching to options like carpooling, taking
transit, and biking.

Parking cash out effectively promotes greener commuting especially when there are good transit choices. It also helps reduce traffic congestion and parking demand and improves air quality.