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The efficiency of public transport operations – An evaluation using stochastic frontier analysis

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  • Holmgren, Johan

Abstract

The aim of this study is to evaluate the efficiency of public transport operations undertaken in Swedish counties by the Public Transport Authorities (PTA), taking into account the substantial differences in operating conditions between counties. The analysis will be performed using Stochastic Frontier Analysis (SFA) with annual data from 1986 to 2009 for 26 Swedish counties. The analysis shows how the efficiency of the individual counties has changed over time. The results are used to provide a ranking (in terms of efficiency) of the Swedish public transport authorities that can provide a basis for benchmarking. It is concluded that the efficiency of the public transport providers in all counties fell during the observed time period. Defining cost efficiency as the ratio of minimum cost to observed cost, the overall (average) cost efficiency for the industry fell from 85.7% in the eighties to 60.4% for the period from 2000 to 2009. Possible explanations for the development include increased emphasis on route density as well as higher environmental and safety requirements.

Suggested Citation

  • Holmgren, Johan, 2013. "The efficiency of public transport operations – An evaluation using stochastic frontier analysis," Research in Transportation Economics, Elsevier, vol. 39(1), pages 50-57.
  • Handle: RePEc:eee:retrec:v:39:y:2013:i:1:p:50-57
    DOI: 10.1016/j.retrec.2012.05.023
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    References listed on IDEAS

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    Cited by:

    1. Cinzia Daraio & Marco Diana & Flavia Di Costa & Claudio Leporelli & Giorgio Matteucci & Alberto Nastasi, 2014. "Efficiency and effectiveness in the urban public transport sector: a critical review with directions for future research," DIAG Technical Reports 2014-14, Department of Computer, Control and Management Engineering, Universita' degli Studi di Roma "La Sapienza".
    2. Nilsson, Jan-Eric & Ahlberg , Joakim & Pyddoke, Roger, 2014. "Optimal supply of public transport: subsidising production or consumption or both?," Working papers in Transport Economics 2014:27, CTS - Centre for Transport Studies Stockholm (KTH and VTI).
    3. Lidestam, Helene & Camén, Carolina & Lidestam, Björn, 2018. "Evaluation of cost drivers within public bus transports in Sweden," Research in Transportation Economics, Elsevier, vol. 69(C), pages 157-164.
    4. Cowie, Jonathan, 2014. "Performance, profit and consumer sovereignty in the English deregulated bus market," Research in Transportation Economics, Elsevier, vol. 48(C), pages 255-262.
    5. Merkert, Rico & Mulley, Corinne & Hakim, Md Mahbubul, 2017. "Determinants of bus rapid transit (BRT) system revenue and effectiveness – A global benchmarking exercise," Transportation Research Part A: Policy and Practice, Elsevier, vol. 106(C), pages 75-88.
    6. Vunjak Nenad & Davidovic Milivoje, 2014. "Cost Efficiency Of Agroindustrial Companies In Vojvodina: Dea Approach," Interdisciplinary Management Research, Josip Juraj Strossmayer University of Osijek, Faculty of Economics, Croatia, vol. 10, pages 369-376.
    7. Obeng, K., 2019. "Public transit cost efficiency studies: The impact of non-contracting regulations," Transportation Research Part A: Policy and Practice, Elsevier, vol. 126(C), pages 247-258.
    8. Markéta Matulová & Hana Fitzová, 2018. "Transformation of urban public transport financing and its effect on operators’ efficiency: evidence from the Czech Republic," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 26(4), pages 967-983, December.
    9. Vigren, Andreas, 2016. "Cost efficiency in Swedish public transport," Research in Transportation Economics, Elsevier, vol. 59(C), pages 123-132.
    10. Pal, Debdatta & Mitra, Subrata K., 2016. "An application of the directional distance function with the number of accidents as an undesirable output to measure the technical efficiency of state road transport in India," Transportation Research Part A: Policy and Practice, Elsevier, vol. 93(C), pages 1-12.
    11. Celik, Erkan & Bilisik, Ozge Nalan & Erdogan, Melike & Gumus, Alev Taskin & Baracli, Hayri, 2013. "An integrated novel interval type-2 fuzzy MCDM method to improve customer satisfaction in public transportation for Istanbul," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 58(C), pages 28-51.
    12. van Engelen, Matti & Cats, Oded & Post, Henk & Aardal, Karen, 2018. "Enhancing flexible transport services with demand-anticipatory insertion heuristics," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 110(C), pages 110-121.
    13. Mouwen, Arnoud & van Ommeren, Jos, 2016. "The effect of contract renewal and competitive tendering on public transport costs, subsidies and ridership," Transportation Research Part A: Policy and Practice, Elsevier, vol. 87(C), pages 78-89.
    14. Nassereddine, M. & Eskandari, H., 2017. "An integrated MCDM approach to evaluate public transportation systems in Tehran," Transportation Research Part A: Policy and Practice, Elsevier, vol. 106(C), pages 427-439.
    15. Vigren, Andreas, 2014. "Costs for Swedish public transport authorities in tendered bus contracts," Working papers in Transport Economics 2014:22, CTS - Centre for Transport Studies Stockholm (KTH and VTI).

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