Subsidy Calculation Model And The Mechanism Of Beijing Public Transportation

With the accelerated process of urbanization, the problem of urban traffic congestion and urban pollution are getting worse. Urban public transportation has the advantages of carrying a large quantity, high delivery efficiency, less pollution and low transportation costs so on. Therefore, giving priority to the development of urban public transportation has become an important part of supporting the healthy operation of our city nowadays. However, public transport has the properties of quasi-public goods and public welfare. The income is difficult to make up for the huge expenditure. So the public transport enterprises are faced with the risk of continuing-operations. In this situation, government financial subsidies are necessary.From the early days of our country founded, the Beijing municipal government had provided strong fiscal and policy support to the ground public transport companies. Huge financial subsidies had not promoted the enterprise development and improved service. This reflects that the use of subsidies and the subsidy mechanism were unreasonable. So it is difficult to determine the reasonable amount of subsidy. Tax cannot be fully utilized as well. As a result, the enterprise was over-reliance on the government’s financial subsidies, which lack of power to improve their own operating performance.The research object of the article is Beijing ground public transport. Firstly, the article reviews the domestic and foreign research results on the financial subsidies for public transport. Then, combining with the problems of current situation of Beijing, the article puts forward threecalculation models, which based on the method of cost subsidy standard,bus fare and the size of the passengers. After the theoretical study and practical experience in domestic and international frontier, this article summarizes the experience of other cities which Beijing can learn from them. The improvement measures are put forward from two aspects of both government and enterprise. The research results have reference significance for the government to formulate the subsidy policy and help to achieve good development of the company.