Impact of Coastal Railway Transportation Decisions on Public Welfare

Abstract

Niu, X., 2019. Impact of coastal railway transportation decisions on public welfare. In: Li, L.; Wan, X.; and Huang, X. (eds.), Recent Developments in Practices and Research on Coastal Regions: Transportation, Environment and Economy. Journal of Coastal Research Journal of Coastal Research, Special Issue No. 98, pp. 284–289. Coconut Creek (Florida), ISSN 0749-0208.China's coastal railway public welfare compensation mechanism should establish and improve the freight rate formation mechanism. Under the current relative price level, it is not feasible to completely correct the price distortion through compensation, and the freight rate formation mechanism is not in line with the industry characteristics of coastal railway as a quasi-public product. Government purchase services should be based on prices that are consistent with market rules. If there is no price reflecting the relationship between supply and demand in the market, the government has no reference standard for compensation for coastal railway transportation companies. This article will study the formation mechanism of material transportation price when the government and coastal railway transportation enterprises are equal. Research finds that centralized decision-making can increase the total revenue of the government and coastal railway transportation companies, and the order quantity of centralized decision-making is larger than that of the scattered orders; the transportation company still provides transportation services to the government according to the original wholesale price. When an order is placed according to the optimal order quantity for centralized decision-making, the government's revenue will decrease, and the coastal railway transportation company's income will increase. At this time, the government will not participate. This article focuses on decision-making. Therefore, it is necessary to develop a new allocation mechanism to induce the government to choose the optimal order quantity for centralized decision-making.