Car ownership is a major driver of household travel behavior and has a marked impact on transport demand, energy consumption, emission levels and land use. However, just how curbside parking regulations (i.e. paid parking) affects car ownership remains unclear. Here, we employ a two-way fixed effect model using panel data and difference-in-differences estimations to determine the causal impact of changes in parking regulations and the specific impact of the extension of a city-wide parking policy in Barcelona. Our results suggest that the introduction of paid parking to reduce non-resident/visitor demand has a positive impact on resident car ownership levels. Our welfare analysis suggests that the welfare loss derived from the residents’ parking subsidy and their likely increase in car usage can easily offset the benefits derived from visitor-trip deterrence. This being the case, the tradeoff between efficiency and acceptability requires careful consideration.