Abstract

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Title:: Reflection on the “loaning for building roads and tolling for repay” policy

Author(s):: XU Hai-cheng; JIA Rui-ning; School of Economics and Management, Chang‘an University, Xian 710064,Shaanxi, China

Keywords:: toll road; economic performance; “loaning for building road and tolling for repay”; loaning and refunding in union

Abstract:: By the comparison the profit and loss of toll road between the midwest regions and the eastern regions, this paper rethinks the policy of loaning for building roads and repaying with collecting toll fees, seeking methods to improve the economic performance of the industry from the angle of policy adjustment. It is pointed that this policy have caused three problems in some regions, including the overadvanced planning of the highway project, the opposite effect of the “loaning and refunding in union” policy and the high debt risk, though it boosts the development of the industry in a certain period of time；Besides, this policy should be adjusted on the basis of the subdivision of the welfare project and marketing project ,and the public welfare highway project should be also improved in the midwest regions. The cooperation system between government and social capital in the eastern regions should be improved and cross subsidy form can be used to reduce the capital pressure of highway construction in the midwest regions.Key words: toll road; economic performance; “loaning for building road and tolling for repay”; loaning and refunding in union