Research On Efficiency Of Financial Subsidies In Urban Public Transport

At the beginning of the new century,the development of urbanization has reached a climax in china.With this great development,some problems of urban transport has gradually emerged and become one of the main obstacles to urban sustainable development.Therefore,the bus priority necessarily turns into a nationally strategical policy of China.The public transport subsidy is an essential policy of bus priority and this finiancial subsidy has laid a solid foundation for the urban public transport development,however,when it comes to the specific implementation of subsidies,whether to choose the way of subsidies,or to decide the amount of subsidies,there are a lot of problems that led to inefficiency.The existence of these problems causes the inefficiency of financial subsidies and makes the subsidy policy can not complete the expected outcoming.So,the research on how to make the subsidies in public transport be implemented more efficiently is urgently needed and this is also the purpose and essential issue of this paper.In this paper,the necessarity of financial subsidies in public transport is firstly discussed.Relevant theories such as public goods theory,the externality theory and so on are used in the analysis.Next,the economic essence of public transport subsidy is discussed on the base of particular figures and cases,using some classical theories of economy.The public transport subsidy is firstly classified as four sorts:sum subsidy on supply side,sum subsidy on demand side,factor subsidy on supply side,factor subsidy on demand side.Then,the characteristics and functions of the four sorts of subsidies are respectively discussed.The advantage and disadvantage of the subsidy ways under different market structures are compared next.Then,the development of public transport subsidy policy in China is discussed.The problems and solutions of subsidy implement are also involved.The subsidy policy development in Beijing is particularly discussed.After that is the public transport subsidy policy in several selected international cities.Finally,the conclusion of the discussion is that the fator sunsidy with condition of franchise is the best way to implement subsidy.At last,a set of proposals are made that rational and efficient procedure of public transport subsidy should be founded and marketization of public transport industry with franchise should be intrduced in future.