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UPDATED: January 13, 2014 NO. 3 JANUARY 16, 2014
Should Subway Fares Be Increased?
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Lu Wenjiang (Beijing Times): Bearing in mind high operation costs, it is necessary to find a balance where ticket prices are acceptable to both operating companies and commuters.

With low ticket prices, more commuters means heavier financial pressure. With more commuters flooding subways during rush hours, operators are faced with increased security pressure. A flexible ticket price is an option to ease financial and security pressures for operators.

We must also understand that adjusting fares is just one choice. If we want to thoroughly solve the city's traffic problem, a comprehensive improvement of public transportation is necessary. I hope the city can grasp the chance to further develop its public transportation and make it more convenient.

Opponents

Dong Bihui (Qianjiang Evening News): It seems that the Beijing Municipal Government wants to use pricing lever to reduce the density of subway commuters from 10 persons per square meter to five persons per square meter. Is this possible?

In theory, a ticket price increase can reduce the number of commuters. But in reality, rigid demand will reduce the effect of this strategy. For example, office workers, who form the majority of commuters during the morning and evening rush hours, will keep taking the subway, because they are left with no better choices as the roads are congested while taxi fares are expensive.

Furthermore, one of the aims of fare reduction in 2007 was to attract more people to take the subway and ease traffic congestion on the roads. If the rise of subway fares drives some passengers to take buses instead, that will again increase traffic congestion.

Yang Xiaojun (www.jcrb.com): I firmly oppose the Beijing Municipal Government's proposals to raise subway fares.

According to the municipal government, one reason for the fare hike is that too many people take the subway, putting pressure on the subway system. Beijing is a crowded city, but nobody has the right to stop the city's residents taking the subway. Beijing's public transportation has a certain capacity. If fewer people take the subway, there will be more who choose to take buses or to drive. This will put more pressure on the roads and add further pollution to an already smog-filled city.

Second, according to the municipal government, another reason for the hike is that there is heavy financial pressure on the government caused by the 18 billion yuan ($2.94 billion) subsidy each year. But making the commuters take responsibility is wrong. I always believe that the subway provides a social welfare service to the public, and therefore the government should maintain the current subsidy policy.

Third, there is a transparency problem. The government said it has spent too much money on the subway, but there is no precise information about how the money was spent. The government should disclose more information on the cost and revenue of public transportation and invite a third party to audit their books.

Tang Jiachen (www.haiwainet.cn): The end of the "2-yuan ($0.33) era" will lead to two outcomes: First, the costs in time or money for most people using public transportation will increase. The subway fare should take into account both the fiscal capacity as well as the financial burden on commuters. Second, congestion on roads will increase.

Obviously, the government wants to release part of its financial burden by raising the subway fare. However, the costs for the government may be bigger after the price hike. On one hand, the move may cause public resentment. According to a poll taken by Sina.com, 61.3 percent of the 15,200 respondents were opposed to the price increase, with 34.8 percent agreeing with it. On the other hand, more pressure on road traffic may need more government subsidies.

My conclusion is that more assessment is needed to decide the subway fares, and more measures—such as infrastructure building, scientific design of traffic systems and urban development planning—are needed to solve the city's traffic congestion.

Email us at: zanjifang@bjreview.com

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