Research On Subsidy Methods Of Urban Public Transportation

With the accelerated process of urbanization, the problem of urban traffic congestion and urban pollution are getting worse, so giving priority to the development of urban public transportation has become an important part of supporting the healthy operation of our city nowadays. Urban public transportation has the advantages of carrying a large quantity, high delivery efficiency, less pollution and low transportation costs so on. In order to support the development of the bus industry, the government must offer financial subsidies to public transportation enterprises. Thus, effective subsidies promote public transportation industry into the track of healthy development, and achieve the whole community welfare.Based on this, the article discusses the urban public transportation subsidies. Firstly, the article analyzes the urban public transportation feature, such as positive externalities, quasi-public goods, competition and regulatory characteristics. Then the article introduces the economic theory model of subsidies. Secondly, some subsidy methods of public transportation at home and abroad are discussed in order to summarize the successful experience including London, Paris, Tokyo, Curitiba abroad and Hong Kong, Taiwan, Shenzhen, Shanghai in the domestic. Then the article Analyses similarities and differences of eight city subsidies, pointing out that the most fundamental purpose of government subsidies is to promote public transportation companies to provide better service for passengers, and passengers can get a score of the service level of bus enterprises. Thirdly, the article focuses on principal-agent relationship between the government and bus companies and gets the result that due to asymmetric information agency costs cost much. Further, the passenger satisfaction variable is introduced based on this principal-agent model and the conclusion that after introducing the passenger satisfaction variable the agency costs are less than before not to introduce is get. Thus, we can easily reach the information that it is conducive to considering the passenger satisfaction in subsidizing the urban public transportation. Finally, the article Puts forward suggestions for further improvement of urban public transport subsidies and gives market-oriented outlook.