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The efficiency of Norwegian road toll companies

  • Welde, Morten
  • Odeck, James
Registered author(s):

    This paper analyses the level of efficiency at which road toll companies are operated in Norway. Two alternative methods are applied for this purpose: data envelopment analysis (DEA) and stochastic frontier analysis (SFA). The data comprise a total of 20 toll companies that have been in operation in the period 2003–2008. The findings of the paper are as follows: 1) There is a great potential for efficiency improvement in the sector, irrespective of the method used, but the variation in the efficiency scores is dependent on the method used; 2) there is no evidence of economies of scale, as has been found by other authors, such as Odeck 2008, How efficient and productive are road toll companies? Evidence from Norway, Transport Policy. 15, 232–241 and, Amdal, E., Bårdsen, G., Johansen K. and Welde M., 2007. Operating costs in Norwegian toll companies: a panel data analysis. Transportation. 34, 681–695. These results suggest that toll companies could generate significant savings by employing industry best practices. Further, decision makers are warned not to be indifferent to the approach used i.e., DEA and SFA, as these may give very different results.

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    File URL: http://www.sciencedirect.com/science/article/pii/S095717871100021X
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    Article provided by Elsevier in its journal Utilities Policy.

    Volume (Year): 19 (2011)
    Issue (Month): 3 ()
    Pages: 162-171

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    Handle: RePEc:eee:juipol:v:19:y:2011:i:3:p:162-171
    Contact details of provider: Web page: http://www.elsevier.com/locate/inca/30478

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    1. Simar, Leopold & Wilson, Paul W., 2007. "Estimation and inference in two-stage, semi-parametric models of production processes," Journal of Econometrics, Elsevier, vol. 136(1), pages 31-64, January.
    2. R. D. Banker & A. Charnes & W. W. Cooper, 1984. "Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis," Management Science, INFORMS, vol. 30(9), pages 1078-1092, September.
    3. Odeck, James & Bråthen, Svein, 2002. "Toll financing in Norway: The success, the failures and perspectives for the future," Transport Policy, Elsevier, vol. 9(3), pages 253-260, July.
    4. Eliasson, Jonas, 2009. "A cost-benefit analysis of the Stockholm congestion charging system," Transportation Research Part A: Policy and Practice, Elsevier, vol. 43(4), pages 468-480, May.
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    8. Odeck, James & Bråthen, Svein, 2008. "Travel demand elasticities and users attitudes: A case study of Norwegian toll projects," Transportation Research Part A: Policy and Practice, Elsevier, vol. 42(1), pages 77-94, January.
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    15. Odeck, James, 2008. "How efficient and productive are road toll companies?: Evidence from Norway," Transport Policy, Elsevier, vol. 15(4), pages 232-241, July.
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