Methodology for determinating regulated cost of urban public transport providers in China

Methods to determinate the reasonable cost of an urban public transport provider are essential for Chinese governments to figure out how much the financial subsidy should be supplied for sound development of urban public transport. Through research on the cost regulation of urban public transport in cities, as Shenzhen and Shanghai, authors put forward the objectives, principles, indicators and systems of the cost determination methods, based on analyzing the relevant laws, regulations, standards of the urban public transport industry, and the technical and economic features, cost levels of the providers in recent years. Case studies demonstrate that these methods can effectively identify the regulated cost of urban public transport providers, and make it acceptable by related aspects.