Effective Supply And Subsidy Mechanism Of Railway Public Welfare Transport Services

ABSTRACT:For a long time, under order planning and highly regulated by our country, railway undertake a large share of the public welfare transportation. Public welfare transport service is the social universal service requirements of relevant social subject to the railway transport enterprises, it is the part that the railway transport enterprises achieved social benefits but its costs are not fully compensated. Establish and improve accounting systems, form a reasonable subsidy mechanism for effective supply of railway public welfare transport services is essential.Firstly, based on externality theory and stakeholder theory, this paper theoretically analyze subsidies for public welfare transport service, by building a railway public welfare transport services supplied theoretical model, it results that the degree of railway public welfare transport service is the key factors of effective supply from the point of view of social welfare maximization, and classify the level for public the degree of rail public welfare transport service. Secondly, through the analysis the situation and problem of domestic and international subsidies for public welfare transport service, define the cause of the railway transport enterprise public welfare loss from for aspects concluding price regulation and low fare policy, commitment to social welfare concessions, the assumption of government mandatory task and other public welfare policy losses. It proposes the principle that rail public welfare transport services can be classified separately to estimate losses and calculation methods are given classification. Use of contestability theory, considering China’s railway public welfare transport services operating practice, this paper proposed the direction that railway public transport services subsidies for losses from direct franchising to competitive bidding authorization management. Based on the public welfare level classification, it suggested China’s railway public welfare service has two kinds of subsidies:direct financial subsidies and policy support, and explores the ways to establish supervision and evaluation system for a better subsidy mechanism.The main conclusions of this paper are drawn as below:(1)It is necessary that railway public transport services supported by subsidies, and reasonably define and measure of railway public transport service is the basis of appropriate subsidies for losses.(2) Selection of ways of subsidies for China’s railway public welfare transport services is based on the "scale of railway public transport services-welfare losses-subsidy" mechanism.(3) Determinants of effective supply (subsidies) of railway public welfare transport services is the scope for rail transport services as well as exclusive cost of positive externalities.(4) According to different public transport services supply scale, there are four types of rail transport services scenarios.(5) Increased competition can better promote the supply of public welfare transport services.(6) Given appropriate subsidies, it should also develop standards for Railway Transport services, and urge them to improve transport service quality.