Study On The Management And Maintenance Of Chinese Rural Highway Based On Theory Of Public Economics

As the basis of highway network, rural highways are important to realization of the strategicobjective of coordinated development between urban and rural areas. With the rapid growth of milescale, it is urgently needed to change the mode of development for rural highways, from focusing onthe construction to paying equal attention to management, maintenance and transportation. Therefore,it is necessary to study the issue of management and maintenance of rural highways, in the frameworkof highway management and maintenance system, so that to strengthen foundation of socialist newrural development.Based on the theory of public economics, the article made a comprehensive and systematic studyon management and maintenance system and financing problem of rural highways in the theoreticalframework of highway management and maintenance system. Methods of the research emphasizedon the effective combination of practice and theory analysis, that of systemic analysis and key-pointanalysis, that of qualitative and quantitative analysis. The article analyzed the elements of managementand maintenance about rural highways, designed the related systems and mechanisms, and made aquantitative research about financing, then designed and discussed the central investment program.Based on the principles of public economics, the paper made creative study and analysis in thefollowing aspects. Firstly, a theoretical model and function correlations have been constructed to makea systematic study on highways’ economic attribute and theoretical quantitative boundary conditionsunder different circumstances, and a theoretical framework of road management and maintenancehas been developed. Secondly, the theoretical model and function correlations of highway facilityinvestment by public and private sectors have been developed, which further optimized the highwayinvestment efficiency model and studied theoretical conditions for the realization of optimaleconomic efficiency by public financing and private investment. Thirdly, utility function andbalancing model of rural highway community’s supply theory have been established, which made acomprehensive study on the theoretical conditions and methodologies to realize economic efficiencyand social justice, and the corresponding cost that rural residents would like to pay. Fourthly, guidedby theories, the paper analysed the four elements of management and maintenance of ruralhighways, then creatively developed the management and maintenace mechanism and investmentmechanism for rural highways in accordance with the reality, and further innovated the analyticalmethodology to forcast the funds needed for rural highway maintenance in our country.This study shows that, as an important infrastructure serving for economic and socialdevelopment, there are differences and changeability in economic attribute of different highwayprojects. Thus, the corresponding investment and supervising method should be adopted. Ruralhighways belong to community-based or local public product and basic public services. For themaximum benefit to national economy, the national income from the marginal public investment orprivate investment put into the highway facilities, should be equal to the sum of its opportunity cost.At the stage of highway restrict development of economic and social, it has the economic benefit toincrease the public investment and private investment at the same time. With the precondition ofassume cost voluntarily, the community provides rural highways accord Chinese conditions, that isthe important complementary approach with the economic efficiency. The cost based payment ofrural highway supply is compatible with the development trend and our national conditions, whichis an important supplement to realize economic efficiency and social justice. The cost that ruralresidents are willing to pay is identical with the minimum payment function, which can achievehighly efficient and fair management and maintenace after being classified according to servicefeatures and usage requirements. The logic relationship for the theoretical framework of highwaymanagement and maintenance system is that the economic character of highway project decided theprovide liability and investor relations, investor relations and efficient of implementation decided the theoretical framework of highway management and maintenance system."DecentralizationTheorem" is the basic theory for highway management and maintenance system in which the dutyof subjects are local governments.To design the management and maintenance system of rural highways, these principles mustbe obeyed, which are grading management, classification management, responsibilities and rightsand interests consistent, separating decision and execution and supervision, separating the functionsof government from those of institutions and enterprise management, government leadership, and soon. It is need to establish special management and maintenance institution of rural highways, that isto establish a pyramid shaped structure based on county-level and the following agencies andpersonnel, to take environment-concerned treatment, combination of specialists and masses, and soon. In China the revenue and expenditure of special fund of highway management and maintenancewas significant regional difference, and the oil price and tax reform will not impact on its balanceand the structure. Rural highway funding gap will exist for a long time, especially in economicallybackward areas and lower administrative levels. The central government invest system to replacesubvention with bonus can be adopted, which is based on scientific evaluation index system.