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Study on Modes of Cost Compensation of Expressway

Author: MaChao
Tutor: WuQunZuo
School: Chang'an University
Course: Business management
Keywords: expressway charging system cost compensation marginal benefit zero-based transport mode
CLC: F540.58
Type: Master's thesis
Year: 2011
Downloads: 138
Quote: 0
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Abstract


In 1984, China began to use "loan to build roads, pay loan" policy to address the lack of road infrastructure funding issues. The implementation of this system accelerates the development of expressway of China. Only in 27 years, the traffic mileage of expressway ranked second in the world and the limitation of the road was gradually solved. With the formation of the expressway network, the negative effects of charging system to the resource flows and economic development were gradually revealed.First, the percentage of charging road was considerable which has a broad and deep impact; on the other hand, in order to achieve rapid economic development, the construction of expressway must maintain the rapid development. However, it is difficult to guide the further development of China’s expressway charging system and the construction of expressway under the study of existing changing system, which is the background of the study in this paper. Firstly, under the analysis of economic attributes of the expressway, we found that the existing charging system is not necessary, but the cost of expressway must be compensated. Therefore, we proposed here a new mode of cost compensation of expressway called zero-based transport mode:the compensation for the cost of expressway obtains from the regional incremental revenue caused by the expressway according to a certain percentage whereby achieve the free passage of the expressway; Secondly, using the conception "who benefits, who burden" to determine the premise of implementation of zero-based transport mode:when the revenue of non-direct the users could equal the cost of expressway and the marginal benefit of the non-direct the users is greater than the direct users:Finally, calculating the benefits and costs of expressway to achieve the cost compensation of expressway.At the same time of proving the feasibility of zero-based transport mode, by comparison with the existing fee structure, we defined compensation subjec、compensation object、compensation quantification methods and compensation methods in a operational level; besides, from the comparison of direct costs、social benefits and social justice, we found that the zero-based transport mode is much better. Under this model, not only the conflicts of expressway revenue maximization and social benefits maximization are well solved, but also improves the efficiency of resource use, social equity and optimizes the overall functioning of the national economy.

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CLC: > Economic > Transportation and economic > Land,road transport economy > Land,road transport, economic theory > Organization and management of road transport enterprises > Financial Management
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