Abstract: Currently, the publicprivatepartnership (PPP) projects of China′s underground utility tunnels are being built one after another and urgently need to be put into operation. However, the challenging tunnel fees and flawed pricing mechanism significantly impact the rapid development of the utility tunnel PPP projects. As a result, the economic characteristics of the PPP projects for underground utility tunnels are analyzed. The priceinfluencing factors are identified from various dimensions of the government, social capital, pipeline units, and the project to improve the price mechanism of the PPP projects for underground utility tunnels. Based on this, a system dynamics model of the causality relationship for the pricing of the PPP project of underground utility tunnels is built, and the price formation process is investigated based on the principle of system dynamics. The price mechanism of the PPP projects of underground utility tunnels is effectively analyzed using the established causality feedback relationship and price feedback loop. The results may be used as a reference for price determination and mechanism of utility tunnels. 

Key words: urban underground utility tunnel, publicprivatepartnership project, price mechanism, system dynamics