CHINA'S URBAN TRANSPORT DEVELOPMENT STRATEGY: PROCEEDINGS OF A SYMPOSIUM IN BEIJING, NOVEMBER 8-10, 1995. THEME PAPER 10: SHAPING THE FUTURE: GETTING PRICES RIGHT

The purpose of this paper is to examine how the use of the price mechanism might be used to address the critical issues that are likely to confront the urban transport sector in China in future years. The current urban transport situation in China is described and aspects of current pricing and financial arrangements which may be giving the wrong signals to individuals and institutions are identified. The experience of other countries in developing the urban transport sector is examined. The use of market-based systems, how consumers and suppliers behave and the role of the government in making the system work are examined. The role of the market system in achieving economic, equitable and environmental goals is considered. The particular role of fuel pricing is considered. For the covering abstract see IRRD 890936.