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Chengdu public transportation system problems, causes and countermeasures

Author: HuWenJun
Tutor: WangXiaoZuo
School: Sichuan Academy of Social Sciences
Course: Industrial Economics
Keywords: urban public transport system supply government regulation
CLC: F572.88
Type: Master's thesis
Year: 2011
Downloads: 152
Quote: 1
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Abstract


Urban public transport industry is an important area of urban public utilities; it is the basic industries of strategic in a city’s economic and social development that is an integral part. With the economic and social development, people work and live activities more frequently, and need more and more extensive range of activities. So, people rely to the traffic more and more strongly. On the contrary, the increasing vehicles due to road congestion and environmental pollution which caused by emissions more and more seriously. As the result, on the one hand, the city makes it an increasing demand for public transport, on the other hand, countries gave great importance to public transport and bus priority strategies proposed and adopted such as the urban public transport regulations comes out in April 2007, which laid the foundation for the rapid development of urban public transport.However, in the bus operation system, the public transport industry of Chengdu still has many issues that hinder the development of public transport industry. In this paper, I set a starting point by investigation of Chengdu public transport operating company’s operation and financial condition, and found the problems such as inadequate supply of public transport services and the serious business losses. Then this paper analyzes the causes of the problem. At first, this paper make a study of the concept and features of public transport which has found that urban public transport has the properties of quasi-public goods, and it should have a corresponding supply system. Then through the investigation of Chengdu bus group, it is found Chengdu public transport operating company is a single large group in Chengdu’s public transport industry. Besides, Chengdu Bus Group is a state-owned enterprise. Therefore, it can be characterized it as the state-owned enterprises monopoly.Then, the paper analyzes the causes of these problems by made a game model. At first, we establish a rational model that is under complete information, and then it has been added the information asymmetry and monitoring by the constraints of government departments. At last, it has concluded that the Chengdu public transport industry is state-owned enterprises monopolized the supply system, then it will cause the moral hazard and adverse selection problems in the conditions of soft budget constraint and the failed supervision by ambiguity in the regulatory supervision. As a result, the enterprise will operate efficiently.Finally, the paper reviews the theory of public goods supply system of government and market, the practice of successful operating model of public transportation at home and abroad, to study the operating mode of Chengdu public transport industry. In accordance with the experience and the characteristics of Chengdu bus industry itself, this paper proposed Suggestions. On the one hand, Chengdu Public Transport Group should be split into several companies and every company can attract private capital into the case to expand the capital to increase public transport enterprises size of the market by a certain percentage of shares held by the Government. At the same time, it will make sense of the bidding system of making business lines by creating a competitive environment; on the other hand, it should be strengthened the government regulation, especially in the development of tender contract process, this paper proposed to implement a hearing system for the bidding which is made by corporations, governments and the public tender jointly to ensure the quantity and quality of enterprise services by specific quantitative targets.

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CLC: > Economic > Transportation and economic > Urban transport economy > China's urban transportation economy > Local urban transport economy
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