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Efficiency measurement of bus routes and exogenous operating environment effects on efficiency

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  • Weiquan Zhu
  • Xiaoguang Yang
  • John Preston

Abstract

This study develops an independent efficiency measurement model framework of bus routes, so as to treat preferably the heterogeneous outputs in a data envelopment analysis (DEA)-based efficiency measurement. It then introduces four new exogenous operating environment factors at the microscopic level of bus routes, and applies the three-stage DEA approach to incorporate operating environment effects and statistical noise into the efficiency measurement framework. The main purpose is to measure impartially the managerial efficiency of bus routes, purged of operating environment effects and statistical noise, and additionally to investigate the operating environment effects on efficiency. An empirical analysis, based on 39 routes operated in Jiangyin City, China, is presented. The principal finding is that the adoption of the independent efficiency measurement model framework is reasonable and has many virtues. Moreover, the proposed approach could substantially provide decision support both for regulators and for producers of bus services. In addition, the operating environment does indeed significantly affect operating efficiency and quality efficiency, especially the latter.

Suggested Citation

  • Weiquan Zhu & Xiaoguang Yang & John Preston, 2016. "Efficiency measurement of bus routes and exogenous operating environment effects on efficiency," Transportation Planning and Technology, Taylor & Francis Journals, vol. 39(5), pages 464-483, July.
    • Handle: RePEc:taf:transp:v:39:y:2016:i:5:p:464-483
    DOI: 10.1080/03081060.2016.1174364
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    Cited by:

    1. Shih-Heng Yu & Chia-Wei Hsu, 2020. "A unified extension of super-efficiency in additive data envelopment analysis with integer-valued inputs and outputs: an application to a municipal bus system," Annals of Operations Research, Springer, vol. 287(1), pages 515-535, April.
    2. Saeedi, Hamid & Behdani, Behzad & Wiegmans, Bart & Zuidwijk, Rob, 2019. "Assessing the technical efficiency of intermodal freight transport chains using a modified network DEA approach," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 126(C), pages 66-86.

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