Analysis On The Welfare Effect Of Pricing Mechanism Of High Speed Rail To Civil Aviation

In recent years,China's high-speed railway is developing rapidly.As the high-speed railway and civil aviation passenger services are with a high degree of substitution in a specific space distance,the development of high-speed railway has a great impact on civil aviation.A great deal of studies have analyzed the competitive relationship between high-speed railway and civil aviation,but few studies have incorporated high-speed rail and civil aviation into a related market to analyze the welfare effects of high speed railway pricing mechanism on civil aviation.Based on the difference of transportation distance,the alternative relationship between high-speed rail and civil aviation is divided into three types:neutral substitution,strong substitution and weak substitution.On this basis,it compares two pricing mechanism of high-speed rail,free pricing and regulated pricing on the welfare of civil aviation under different alternative intensity by the general equilibrium analysis method.Finally,the results of general equilibrium analysis are tested by numerical simulation,and the simulation results further support the theoretical results.The study founds that high-speed rail improves the social welfare level of fast passenger transport market,but also make to the welfare loss of civil aviation,Because the price of high-speed rail is lower than the market equilibrium.The impact of high-speed rail on the welfare of civil aviation under different substitution intensity is also different.Comparing with equivalent substitution,the stronger substitution of high-speed rail to civil aviation is,the greater impact on civil aviation High-speed rail makes.On the contrary,the impact of welfare of high-speed rail on civil aviation is even smaller.The main innovations of this paper are these follows:(1)It introduces the factor of pricing mechanism of high-speed railway into the study of the welfare effect of high-speed rail on civil aviation;(2)It analyzes the welfare effects of high speed rail under different pricing mechanisms of high-speed rail and civil aviation in the unified market framework.(3)Analyzing the possible effects of high-speed rails under different substitution intensities,it is more in line with reality.The research of this paper provides a reference for the future reform of high speed-railway pricing mechanism and the welfare effects.