Urban Public Transport Systems, Price And Subsidy Mechanism Study

With the rapid growth in economics today, urban public transport is acting a more and more important role in people's working and life, while you can get to almost everywhere in the city by taking a bus or metro. Urban public transport is a public utility, which means the government takes control of its pricing according to household acceptance, thus creats deficits to public transport agent. In China, some large cities now have taken on subsidy program for these kinds of policy losses, but few of them works effectively. Meanwhile, economic growth increased the income of residents, following which private car ownership increased substantially, resulted in heavy road congestion, emissions and noise pollution, and also traffic accidents caused by sharp increase in traffic frequency. Absolutely, it's a huge challenge to our Urban public transport system. Given the situation, the Government acting as the administrator of this system, needs to adjust the public transport pricing strategies to meet more residents's demand in order to generalize the idea of making low-pollution trips; then should fix out a series of effective subsidiy programs to ensure agents' budget balance, and to activate their enthusiasm.In this article, we first figure out the characteristics of urban public transport from view of system theory, especially the network externality effect. Next we analysed the relationship between the three participants of the system, the government, public transport agents and individual. Then we established a public transport system framwork, and formulated a multi-class nonlinear bilevel programing model which concerning government's policy making in the upper level and residents equilibrium considering charge, time and comfort in the lower level, considering congestion, emission and accident in government's objective function. We also proved the exsistence of optimization solution to the model and given out the method to solve it. Finally, this paper presented a 5-node network of public transport, using mathematical software Lingo we got the optimal flow distribution, and then we designed pricing and subsidy mechanism for the model. From the results, we believe that the public transport system model and method to set up the pricing and subsidy mechanism is of practical significance and application value.