Analysis of the Effects of Fuel Tax on Chinese Logistics Industry by System Dynamics

In recent years, fuel tax has replaced road maintenance fees, road tolls, bridge tolls and transport management fees. It is an important measure to decrease the logistics system cost. Fuel taxes reflect the principle of fairness support the "consume more, pay more" policy, which brings some pressure to the transport companies. This paper, analyzing its the positive and negative effects on logistics industry by the implementation of fuel tax, with the method of system dynamics simulation, offers some recommendations and countermeasures for China's logistics industry. This paper aims at shortening the mal-adjustment period and resolving the current cost problems in logistics development. The fuel tax has replaced road maintenance fees, road tolls, bridge tolls and transport management fees, and so on. It is an important measure for the logistics system cost and means much to promote the development of Chinese logistics industry. However, the fuel tax suffers from several negative aspects, particulary with respect to its effects on the weak logistics industry. These include fuel cost, revenues, the cost of developing new lines, purchasing and maintenance of cars. Hence, the logistics enterprises must devise novel means to circumvent these obstacles. Therefore, the paper analyses the countermeasures offered to promote the development of logistics enterprises.