The Study Of Price Setting Of Metro For Environmental Compensation Factor

China is a big country in terms of energy production and consumption. Its CO2emissions is ranking2nd all over the world and also increasing rapidly. According to ourestimation, CO2emissions in China will exceed United States in2025, and become the mostenergy consumption country. CO2is considered as the most harmful greenhouse gases. For itsvast CO2emission, public transportation serves as one of the main chief for global warming.According to analysis on air pollution in Xi’an city, the main reason for air pollution hasbeen changed from burning coal to automobile exhausts. The increase in number ofautomobiles in Xi’an city also continuously increase carbon emission in future. In China,public transportation is composed of buses, cars, cabs and ferries, however the mostenvironmental transportation is rail transit. In Xi’an, developing metro is the most efficientway to decrease carbon emission in public transportation. Based on above reasons, wepropose a ticket price compensation policy, which can attract more citizens to take metro bydecreasing the ticket price. Since more and more citizens will choose metro in this dailytransportation,carbon emission caused by public transportation will decrease further more. Inaddition, this policy also provide the basis for compensation of public rail transportation fromgovernment.In my thesis, I estimate the carbon emission in two ways. One is simulation methodusing Matlab to estimate the random carbon emission in both case of with metro and withoutmetro in each day. In my simulation, I firstly estimate the citizen’s random trip distance, thenchoose certain transportation method according the certain probabilities. After that, the totalcarbon emission of each person can be estimated. Finally, I can calculate the total carbonemission from public transportation in Xi’an by add all eight million citizens’ carbon emission.In another method, by analogy of Nanjing ’s public transportation data, I estimate thedecrease in carbon emission after metro transportation. From my simulation, carbon emissioncan be decreased by1.27million tons by develop metro transportation. In the meantime,analogy method estimate the decrease in carbon emission can be decreased by2.0216milliontons in2020. According to the above analysis, compensation factor for metro ticket should be1.11yuan.