Abstract

This paper addresses a compensation scheme for self-employed bus service requisition of rural passenger transport, and provides a theoretical basis and policy recommendations for the smooth implementation of self-employed bus service requisition process and the integration of urban–rural passenger transport resources. Using Chinese urban–rural passenger transport systems in ten cities or counties (including Shenyang, Liaoyang, Wuxi, Suzhou, Laiwu, Zouping, Wuhu, Guangde, Shuangliu, and Fuyang) as research objects, the compensation scheme for self-employed bus service requisition is explored from three aspects: the construction of compensation model, the estimation of compensation amount, and the determination of compensation mode. The conclusions drawn from this study are summarized as follows: (1) The compensation amount consists of the bus service residual value, the compensation for expected profit in the residual operation period, and the awarded amount for signing compensation agreements. (2) Whether or not bus owners accept the compensation amount is closely related to their psychological expectation threshold. Changes in the average profit of the bus service, the driver’s average wage, and the ticket-seller’s wage, have the greatest impact, the second greatest impact, and the smallest impact on their psychological expectation threshold, respectively. (3) Younger and more highly educated owners tend to accept “monetary compensation and reemployment placement”, while older and low educated owners prefer “monetary compensation and social security”. (4) High compensation fees, providing reemployment placement for drivers and ticket-sellers, and implementing monetary compensation in the form of an “expected income dividend installment” can enhance willingness to sign compensation agreements for self-employed bus service.

Highlights

  • Most cities in China are experiencing rapid urbanization

  • With the background of urban–rural passenger transport integration, this paper takes the self-employed bus owners of rural passenger transport in 10 cities or counties as research objects, the compensation scheme for self-employed bus service requisition is addressed from three aspects: the construction of compensation model, the estimation of compensation amount and the determination of compensation mode

  • The first is by reducing the investment in the bus service; the second is by forcing the government to change the optimal compensation amount by changing the social cost of the requisition

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Summary

Introduction

Most cities in China are experiencing rapid urbanization. In the process of urbanization, a series of problems occur, such as serious waste of resources, deterioration of the ecological environment, and traffic congestion, which affect the sustainable development of society [1]. In March 2003, the document “Notice on Accelerating the Development of Rural Passenger Transport and the Pilot Work of Rural Passenger Transport Networking”, issued by the Ministry of Communications, put forward that 13 cities or counties in seven provinces in the eastern, central and western regions of China had been selected as pilot areas to carry out pilot work on urban–rural passenger transport integration. In November 2016, the Ministry of Communications, the National Development and Reform Commission, and the Ministry of Public Security issued the document “Guiding Opinions on Steadily Promoting the Integration of Urban and Rural Passenger Transport to Improve the Level of Public Service”. The guiding opinions had proposed to integrate urban–rural passenger transport resources, promote the integration of decentralized self-employed bus operators, improve the public transport service level, and support the sustainable development of urban–rural passenger transport

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