Calculating Model of Urban Public Transit Subsidy

Urban public transit financial subsidy is one of the key links, which promote public transit priority strategies. It is an important issue of urban traffic sustainable development to establish a specific operable subsidy calculating model and to improve the way to calculate urban public transit subsidy. This study establishes the game model among the income of residents, enterprises operating costs, and subsidies through utility theory. It shows the advantages of classification subsidy of public transit riders and establishes a specific operable subsidy calculating model. Then, the calculation of Beijing public transit subsidies in 2007 is taken as an example. The results indicate that the subsidy classification and the subsidy calculating model not only can fully satisfy the travel demands of public transit riders but also can effectively calculate the subsidy amount, which realizes the utility maximization of government subsidy. The proposed method is proved to be a new effective way to measure urban public transit subsidy.