Performance-based Subsidy Mechanism for Rural Bus Service
|關鍵字:||偏遠地區;公共運輸;績效補貼;雙層數學規劃;Rural area;Bus service;Performance-based subsidy;Bi-level mathematical programming|
In order to meet the essential mobility need of people, especially for those living in rural areas, the government started to subsidize the operating deficit of rural bus service since 1997. According to the statistics of Directorate General of Highways (DGH), the total deficit subsidy was up to NT$900 millions in 2010, and it has increased year by year. According to the current deficit subsidy mechanism, the public transportation operators with higher operating deficit, will receive higher deficit subsidy, making operators heavily rely on government’s deficit subsidy and lack of motivation to increase their patronage. Based on this, this study aims to introduce the mechanism of performance-based subsidy into the rural bus service subsidy, by allocating the subsidy budget to operating deficit subsidy for maintaining the minimum service level (MSL) of bus frequency, i.e., the essential service and performance-based subsidy for the additional bus frequency. To optimally determine the optimal allocation of subsidy budget and MSL frequency, a bi-level mathematic programming model is proposed. The upper level (i.e. the behavior of government) aims to optimally determine the subsidy allocation towards social welfare maximum; while the lower level (i.e. the behavior of public transportation operators) is to determine the optimal service frequency based on the allocated budget and passenger choices so as to maximize their profit. Besides, the logistic curve is used to reflect the passenger mode choice under various service frequencies. Based on the different allocation concepts of subsidy budget, this study proposes two models, one is the subsidy budget pre-allocated by routes and the other is pre-allocated by areas. A case study on the rural bus service in Hua-lien County is conducted to examine the applicability of the proposed model. The results show that the performance-based subsidy models can not only lower the amount of subsidy, but also improve the public transportation operator’s service levels, suggesting the applicability and effectiveness of our proposed model.