Optimizing the Subsidy Calculation Model of Urban Public Transport

Yunhong Shao,Jing Zhou,Chunqin Zhang,Daoyou Wang,Min Hong,Aditya Rio Prabowo

doi:10.1155/2021/5536801

Abstract

In recent years, to alleviate and resolve the traffic problems in China, the government introduced a series of policies to subsidize public transportation. Accordingly, to effectively implement these financial subsidies, the formulation of a scientific model of urban public transport subsidy calculation, strict control of the total amount of financial subsidies, and clear identification of subsidy targets are necessary. In this study, a linear dual model is developed based on the principle of resource allocation and the economic meaning of shadow prices. The public transportation system of a city in China is considered an example, and both public transport operators and public interest stakeholders are considered. The subsidy calculation for service quality improvement is established for public transportation operations and vehicle transformation. Based on the validation using the above example, the calculation result is found to approximate the actual value, indicating the feasibility of the proposed model. Finally, this article presents suggestions pertaining to subsidy mechanism, operating environment, and service quality as a reference for urban public transport subsidies.

Highlights

With the rapid development of China’s social economy, urban traffic has increasingly become problematic
It revealed a series of problems: the subsidy was not in place; the object of subsidy was vague, resulting in reduced enthusiasm for bus operation; the bus service quality was inadequate; the local financial pressure increased; and some problems remained unresolved by subsidies
(3) Model D indicates that model P reaches the optimal solution through the action of optimal basis B; D reaches the optimal solution; that is, the values are equal. is means that the maximum revenue of public transportation is equal to the minimum value of the financial subsidy. e optimal basis of model D is yj, that is, the unit price of shadow subsidy resulting from the optimal decision

Summary

Introduction

With the rapid development of China’s social economy, urban traffic has increasingly become problematic. Wang et al [33] and Hao et al [34] devised a subsidy calculation model based on passenger utility, enterprise cost, and government financial subsidies, providing a relatively novel idea for the development of public transportation. Domestic and international research scholars have examined public transport subsidies considering three aspects: bus companies, government departments, and passenger analysis problems of public transport subsidies Most of these studies only involved qualitative analysis; they lacked quantitative analysis. Is further includes resolving the information asymmetry between the government and public transport enterprise caused by financial accounting problems Such a resolution increases the enthusiasm of public transport enterprises to operate, improves the quality of fiscal subsidy effect on bus service, and promotes the healthy development of public transport

Model Establishment

Empirical Analysis

Result Analysis and Discussion

Findings

Summary