Research On The Mechanism And Performance Evaluation Of Urban Transit Fare Subsidy

The rapid development of national economy improves people’s life and it also brings a series of traffic problems, such as traffic congestion, air pollution, noises and difficulties in parking. Based on urban public transit having larger capacity and lower emission, priority to the development of urban public transit has become an important strategy to effectively alleviate urban traffic congestion.Urban public transit enterprises have both public welfare-making and profit-making characteristics. As the former, the enterprises implement the low fare police to reduce citizens’ travel costs. As the latter, the goal of enterprises is making profit. To maintain the sustainable development and normal operation of these transit enterprises, the government gives fare subsides to reduce the police-related losses. As the information asymmetry between enterprises and the government, it’s difficult for the government to supervise the behavior of the enterprise and evaluate the benefits of the fare subsidies. So the point of this paper is to establish a scientific and reasonable evaluation model to audit and evaluate the enterprises’ performance of fare subsidies.First, this paper builds a performance evaluation index system of urban transit fare subsidies from project input, implementation, management and output benefit these four aspects and establish a comprehensive evaluation model combined with the method of calculating index weight. Then, based on the analysis of the present subsidy mechanism, we involve the result of the performance evaluation as a new incentive factors in the traditional principal-agent model of urban public transit fare subsidies to build a new model. At the same time, with solving the new model we conclude that the improvement is helpful to improve the level of enterprise’s efforts and create more social benefits. At last, the performance evaluation model is applied to the Guangzhou public transit fare subsidy project in 2011 and the result shows that the model is applicable and reasonable and it can provide reference basis for the government to evaluate the enterprises performance.