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Limitations of DEA-based approach and alternative methods in the measurement and comparison of social efficiency across firms in different transport modes: An empirical study in Japan

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  • Oum, Tae Hoon
  • Pathomsiri, Somchai
  • Yoshida, Yuichiro

Abstract

This paper measures and compares social efficiency of railway firms and airlines in Japan’s domestic intercity travel market. Unlike other efficiency studies, our input and output measures are more comprehensive because we incorporate the life-cycle CO2 emissions as an undesirable output and travelers’ time and government spending on air infrastructure as inputs. We use the nonparametric directional output distance function (DODF) together with the composite social efficiency index to analyze the yearly panel data of the three major railroads and two major airlines during 1999–2007. The results indicate that the railroads are more socially efficient than airlines. Furthermore, we discuss the inability of nonparametric DODF method for comparing the social efficiency of firms across modes.

Suggested Citation

  • Oum, Tae Hoon & Pathomsiri, Somchai & Yoshida, Yuichiro, 2013. "Limitations of DEA-based approach and alternative methods in the measurement and comparison of social efficiency across firms in different transport modes: An empirical study in Japan," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 57(C), pages 16-26.
    • Handle: RePEc:eee:transe:v:57:y:2013:i:c:p:16-26
    DOI: 10.1016/j.tre.2013.01.003
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    5. Ha, Hun Koo & Kaneko, Shinji & Yamamoto, Masashi & Yoshida, Yuichiro & Zhang, Anming, 2017. "On the discrepancy in the social efficiency measures between parametric and non-parametric production technology identification," Journal of Air Transport Management, Elsevier, vol. 58(C), pages 9-14.
    6. Mushtaq Taleb & Ruzelan Khalid & Ali Emrouznejad & Razamin Ramli, 2023. "Environmental efficiency under weak disposability: an improved super efficiency data envelopment analysis model with application for assessment of port operations considering NetZero," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(7), pages 6627-6656, July.
    7. Fangqing Wei & Junfei Chu & Jiayun Song & Feng Yang, 2019. "A cross-bargaining game approach for direction selection in the directional distance function," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 41(3), pages 787-807, September.
    8. Sun, Jiasen & Yuan, Yang & Yang, Rui & Ji, Xiang & Wu, Jie, 2017. "Performance evaluation of Chinese port enterprises under significant environmental concerns: An extended DEA-based analysis," Transport Policy, Elsevier, vol. 60(C), pages 75-86.
    9. Marchetti, Dalmo & Wanke, Peter, 2017. "Brazil's rail freight transport: Efficiency analysis using two-stage DEA and cluster-driven public policies," Socio-Economic Planning Sciences, Elsevier, vol. 59(C), pages 26-42.
    10. Lee, Taehwee & Yeo, Gi-Tae & Thai, Vinh V., 2014. "Environmental efficiency analysis of port cities: Slacks-based measure data envelopment analysis approach," Transport Policy, Elsevier, vol. 33(C), pages 82-88.
    11. Tomikawa, Tadaaki & Goto, Mika, 2022. "Efficiency assessment of Japanese National Railways before and after privatization and divestiture using data envelopment analysis," Transport Policy, Elsevier, vol. 118(C), pages 44-55.
    12. Xinyu Zhuang & Li Zhang & Jie Lu, 2022. "Past—Present—Future: Urban Spatial Succession and Transition of Rail Transit Station Zones in Japan," IJERPH, MDPI, vol. 19(20), pages 1-35, October.
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