Last week, an IJ editorial on pricing ferry parking took a cautious note. “The bridge board needs to maintain a focus on keeping the ferry affordable to all and a convenient and dependable way to get to and from work.” The IJ is concerned that charging for parking will make the ferry unaffordable. But the aim shouldn’t be more affordability; it should be for efficiency. And, the best way to manage a scarce resource efficiently, including ferry parking, is to put a price on it. It’s a basic principal of economics. Supply can meet demand only when the resource has the right price. Higher prices discourage consumers from using the resource and encourage producers from making more of it. When it comes to a relatively fixed resource (inelastic supply), like parking, the price just regulates demand.
In the real world, a price forces someone to consider whether that resource is actually worth paying for. Is a parking space worth $2? Those who answer no will either get to the ferry another way or take another mode of transportation to the City. This leaves room for others who are willing to pay but who couldn’t find a space before.
Here’s the neat thing. By putting a price on parking, suddenly accessing the resource, while more expensive, is actually more convenient and dependable. Today we have a shortage of spaces, and someone who doesn’t show up by 7:30am is probably not going to get a parking space. If the price is such that, say, 5 percent of parking spaces are free each day, that means there will always be parking available, even in the middle of the day.
The IJ should concern itself not with how cheap we can make a ferry trip but how efficiently we can manage the ferry’s infrastructure. Thankfully, GGT is concerned about this. So rather than spend tens of millions to boost the parking supply, GGT wants to regulate it with a fee. People can still get to the ferry for free if they want to, with a shuttle, foot, or bike, but there is room to spare there. If GGT wants to operate with efficiency, this is where people need to go.