Are China's HSR tariff affordable and economic equitable? An international comparison perspective

While the issues of high-speed rail (HSR) tariff and its impact on equity have always been a hot topic in China, which also attracted the attention of international researchers, research on the level of HSR tariff from the perspective of individual affordability and equity issue have scarcely been considered. This study therefore aims to fill the research gap by quantifying the HSR relative tariff level and its impact on income/regional distribution via introducing a HSR affordability index.Based on the index, we calculate the HSR affordability levels of the main international sample countries with the order of magnitude. Then we expand the analysis of HSR affordability level according to differentiated HSR pricing practice in the selected countries. At the same time, we compare the HSR tariff impact on economic equity among different countries, regions, and social classes.The result indicates that although the absolute level of HSR tariff is low, China is generally in the middle/the lowest and unbalanced position among the sample countries on HSR affordability in terms of expensiveness and economic equity. When we considered the differentiated tariff policy implemented in Europe and Japan, the affordability gap between China and the other countries is further enlarged. Moreover, inequitable distribution of HSR affordability between different income groups and social classes are found larger not only within China, but also higher when compared to the other sample countries.Finally, we conclude that China should implement differentiated HSR pricing system at a larger scale and greater extent based on the Ramsey pricing and Yield management principle to grasp the additional revenue from the high level income group/the developed region and alleviate the economic equity as well. Meanwhile, we also suggest the balance between HSR affordability for passengers themselves and the macro financial affordability for the country as a whole should also be considered in the future HSR pricing regime formulation.