Media’s Role in PricingHeather M. KrausePA 8202: Networks & PlacesApril 28, 2003Executive SummaryOverview of Value PricingCase for Implementation of Value PricingResearch Questions and MethodologyFINDINGS & ANALYSISOverall Awareness of Value Pricing Through the MediaAnalysis of Current Projects and MediaOperational projects: I-15 in San Diego, California & London Congestion ChargeResults from the LA Times on the I-15 project San Diego, CaliforniaTone:Champion of the Project:Bundling:Results from the Evening Standard on the London Congestion Charge projectTone:Champion of the Project:Bundling:Proposed Projects: Seattle, Washington & Minneapolis/St. Paul, MinnesotaResults from the Seattle Times on the proposal of value pricing in Seattle, WashingtonTone:Champion of the Project:Bundling:Tone:Champion of the Project:Bundling:Conclusion and ImplicationsLanguage and AwarenessProject ChampionImprovement of Media’s Role in Public EducationTable 1: Queried for articles relating to transportation pricingLeading London Daily NewspapersMedia’s Role in Pricing Heather M. Krause PA 8202: Networks & Places April 28, 2003 1Executive Summary Politics and awareness, not technology, dominate change and implementation of effective policy. The media can play a key role in gaining public support for various policy proposals. Although value pricing is seen as a “good idea” in the transportation community, value pricing projects have lacked widespread implementation across the United States. This paper researches the role of the media in the implementation of value pricing projects and proposals. More specifically, it addresses the questions: • What is the overall awareness of pricing through the media? • What, if any, differences in the media exist between successful projects and unimplemented proposals? First, there will be an overview of value pricing and the case for implementation of value pricing. The two research questions will be analyzed by 1) using the Lexis Nexis search engine and 2) reviewing a series of articles from two implemented pricing projects in San Diego, California, and London and two proposed pricing projects in Seattle, Washington, and Minneapolis/St. Paul, Minnesota. More specifically, the paper will analyze and compare the media characteristics of the implemented projects to the media characteristics of the proposed projects. Finally, conclusions and implications for policymakers and planners will be drawn from the implemented projects and applied to the proposed projects. Overview of Value Pricing As congestion continues to grow and gas tax revenues decrease, urban areas cannot continue to finance and build more road capacity. Instead, transportation policymakers, planners, and economists are looking to traffic demand management policies, such as value pricing, as an important part of the solution to address the issue of congestion. Value pricing, also known as congestion pricing, road pricing, and peak-period pricing, is a way of using market power to reduce waste associated with congestion. Value pricing uses electronically collected fees or tolls, which vary with the level congestion, for road use during peak travel demand periods. This variable pricing is used to encourage drivers to change their travel behavior, such as mode, time, or route, to help alleviate congestion on the road system. This concept mirrors other sectors of the economy, such as airline, long-distance telephone service, and tourism industries, that use variable pricing to respond to peak demand periods. The Congestion Pricing Pilot Program was authorized under the Intermodal Surface Transportation Efficiency Act (ISTEA) of 1991. This program made grants available to public 2agencies interested in experimenting with innovative transportation pricing schemes. In 1998, Congress passed the Transportation Equity Act for the 21st Century (TEA-21), which amended ISTEA by renaming the program, the Value Pricing Program, and including 1) the provision that allowed “any value pricing project included under these local programs may involve the use of tolls on the Interstate system” and 2) the provision that allowed states to permit “vehicles with few than two occupants to operate in high occupancy vehicle (HOV) lanes if the vehicles are part of a local value pricing pilot program under this section”(FHWA, 2003, on-line). Although there are a number of international examples of value pricing, the first U.S. value pricing project, which utilizes the road pricing strategy, high occupancy toll (HOT) lanes, opened on State Route 91 (SR-91) in Orange County, California on December 27, 1995. Since SR-91’s implementation, three other HOT lanes have been implemented in two metropolitan areas. In Houston, two HOV-3 facilities have been changed into a form of HOT lanes. In San Diego, an underutilized HOV lane along I-15 was changed to a HOT lane. 3Case for Implementation of Value Pricing Value pricing projects provide a wide range of potential benefits for the entire transportation system. Some of the benefits to the various stakeholder groups include: Drivers: • Enhances urban mobility • Reduces congestion during peak period hours • Reduces frustration and delay because of efficient traffic flow • Reduces travel time • Increases trip time reliability • Generates revenues to finance congestion-reducing road improvement projects • Offers an option when in a hurry Taxpayers: • Maximizes underutilized HOV road capacity, which leads to efficient use of current road capacity and reduces the need to build new road capacity • Creates an efficient system because it links the cost of driving and congestion directly to the driver • Offers more choice than traditional taxes, such as the gas tax • Reduces demand for costly road expansion • Provides another means to finance and maintain roads Transit Riders and Carpoolers: • Enhances urban mobility • Generates revenues for transit improvements and investments • Increases transportation choices • Provides more efficient and faster transit trips • Increases transit trip time reliability • Creates incentives to make transit and carpooling more attractive Environment: • Reduces air pollution and fuel consumption resulting from stop-and-go traffic • Improves the region’s quality of life • Provides a compromise to those who demand the elimination of (sometimes