In Urban Rail Transit Of China Government Subsidies Mechanism Research

As we know, Chinese urban development gains a huge benefit from a golden period. The urbanizationprocess of China goes shoulder by shoulder with the development of the international metropolis whetherin development model or dimensions. However, the development of a city needs to rely on policy supportand the introduction of foreign capital to create an economic scale circle, which could share the culture topromote the city to the diversification of economic and political civilization. Future more, if we can see cityas a micro-main world, then, this micro-main body could form a national state, which is a complex systemthat include the political, economic, cultural and other vertical extension of the exercise of state functionsin each of the different areas. Thus, if we consider the constituent of these cities, their development trendswill affect the situation as a whole, and, to be an indirect impact on the country’s future development. Whatis more important, traffic has been one of the most important factor that restricting the development of acity. Since our country is lack of prospective planning for the urban group in the first place, many cities’transportation network gradually suffer disadvantages of rapid economic development. With theaccelerated process of urbanization, the geographical concept is becoming more and more weak in people’smind. People are willing go to the major cities, which has rich resources, and intense competition. However,people believe that the more competition will have more opportunities, thus the population rapid increase.Also, coupled with the public improvement of living standards and the rapid increase of private cars, citiesget pains of issues such as development road and transportation problems, energy consumption, andenvironmental pollution. All in all, with the establishment of the scale of Chinese urbanization, the urgentbadly need a solution to carry traffic for more transport services. Thus, the development of urban railtransport development is the time choice in response to meet the requirements of urban development andpublic’s need.Throughout the process of development of Chinese urban rail in the past few years, we can see that inChinese urban rail transit has entered a stage of rapid development. Urban rail transit’s particularity is notonly represent as a systemic project which has huge investment, long cycle, and the long payback period, but also become a quasi-public property, future more, it can also help realize the Government’s political andeconomic goals. In terms of investment and construction, basically, urban tail system needs a huge amountof projects upfront investment. As a result, Chinese urban rail transportation is the government-leadingproject, which means, the Government pays the construction funds and the later operation is belongs to thesubway operating company. However, due to the positive externalities of urban rail transport is not coupledwith the low-fare strategy for profit, even though there exists a policy-related loss, the Government has theresponsibility to pay the operating subsidy to the operation company. In fact, from all the city’s rail transittoday, whether in operation or construction, the current situation of rail transport is basically still ingovernment subsidies to operate.On the other hand, due to the different of economic and social development between the various cities,the government’s financial ability to pay is not the same, which is a need for an objective, realistic subsidymechanism. Therefore, The spirit of this article is focus on the proceeding from reality and a briefdescription of the course of development of urban rail transit. The first place is the positioning of the urbanrail transit and urban rail transit an active role as well as urban rail transit quasi-public goods, externalities,and policy-oriented low-cost and other factors determine the urban rail transit in the city’s economy willinevitably require government subsidies, subsidies mode two-stage investment in infrastructure subsidiesand operating subsidies, according to the status of domestic and international urban rail transit subsidies,the analysis of three aspects of urban rail transit government subsidies for these more realistic The threemodes can be operable subsidies mode. At the end of the article, I would give some policyrecommendations to promote the urban rail transit for a better and faster development of the city.