Productivity,efficiency and technical change in the European railways: A non-parametric approach

The purpose of this paper is to analyse the evolution of productivity in the European railways in the period 1970–95. We use a non-parametric approach that enables changes in productivity to be broken down into variations in efficiency and technical change. The results indicate that the productivity growth is concentrated in the last period (1985–95), when the majority of the companies undertook processes of reforms. This increase in productivity is mainly due to technical progress. We also analyse the determinants of efficiency and, unlike other papers, the technical change, finding that the greater the degree of autonomy and financial independence, the higher the efficiency levels and technical change. This revised version was published online in June 2006 with corrections to the Cover Date.     

Productivity assessment of African seaports with biased technological change

Abstract

This paper analyses the productivity of a representative sample of African seaports from 2002 to 2008. Productivity scores are decomposed, based on the Luenberger productivity indicator, and the nature of technological change is analysed. The paper finds that Nigerian seaports are the most efficient, followed by Angola and Mozambique. Discussions of the results as well as related policy implications are provided.     

Transporting Singapore—The Air‐Conditioned Nation

Abstract

The role of a metaphor of centrally controlled air conditioning in governing Singaporean transport planning is examined, and its consequences evaluated. A modern transportation system has been put in place to link a hierarchy of central places. Tight government control has made change possible. A reliance on technical expertise at the expense of public involvement has, however, failed to develop public transport to effectively serve a range of dispersed‐destination travel needs. Regulatory approaches, furthermore, have discouraged service innovation. Policies making car purchase expensive have restricted car ownership. Effective change would be facilitated by involving a highly educated public more in decision‐making.     

Non-parametric analyses of efficiency of airports

This paper estimates the efficiencies and productivity changes of 12 international airports in the Asia-Pacific region based on data from 1998 to 2006. We apply stochastic frontier analysis (SFA) to compute efficiency estimates and use the Malmquist productivity index (MPI) to analyze productivity changes. We use the SFA model with a translog-type production function after testing the statistical hypotheses. According to the results of the SFA hypothesis tests, airports have experienced a technological regression; the deviations from the efficiency frontier are caused more by technical inefficiency than random noise. However, the inefficiency was found to decrease. The MPI reveals a declining trend resulting more from technological change than from efficiency change, with a decrease in inefficiency. Taken together, both the hypothesis tests and the MPI not only provide consistent conclusions, but also suggest that airports should concentrate on technological progress.     

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

By using the directional distance function (DDF) of data envelopment analysis (DEA), this study measures the technical efficiency of 37 Indian state road transport undertakings (SRTUs) for the year 2012–13. We employ the DDF as a tool for analyzing a joint production function with both desirable and undesirable outputs (i.e., the number of accidents). A comparison between the results with and without accidents shows that several SRTUs have experienced significant changes in their efficiency scores as well as in their rankings after accounting for the undesirable output. This indicates the importance of including the number of accidents – a safety standard – as representative of the undesirable output in computing the efficiency scores of SRTUs. The results of the Tobit model indicate that SRTUs with greater vehicle productivity are more efficient under both conventional DEA and DDF approaches. We also employed zero-truncated negative binomial model to assess the factors influencing the number of road accident experienced by the Indian SRTUs and found that the accident count was significantly influenced by fleet utilization and vehicle productivity.     

The treatment of traffic in the Dutch environmental outlooks: the role of science in policy making and policy evaluation

The Dutch National Institute of Public Health and Environmental Protection publishes Environmental Outlooks in which 25‐year projections are made. These Outlooks quantifying the environmental problems, form the scientific basis for Dutch environmental policy. Traffic and transport is one of the main sectors causing environmental problems. The emissions and energy use of all relevant categories (road traffic, non‐road traffic) are based on model simulations with models. This paper describes the main models used.

If present policy is implemented only a minority of the environmental targets will be met.

If a sustainable transport system for the Netherlands means a large reducton in CO₂ emissions and energy use after 2010 a stronger emphasis on both technical and non‐technical measures (such as land‐use planning combined with public transport improvements) for the period until 2010 is needed than proposed in the Second Transport Structure Plan, unless a sustainable energy source becomes available.     

The demand for public transport. part II. supply and demand factors of public transport

Abstract

This two‐part article, concerned with the way public transport ridership is affected by the various relevant factors, is based on the Executive Summary of The Demand for Public Transport (Webster and Bly 1980), the report of the TRRL‐sponsored International Collaborative Study on Factors Affecting Public Transport Patronage. Part I of the article, which was concerned with the social and economic conditions in which public transport operates, showed the importance of the background factors such as income, car ownership and land use on public transport usage: it also indicated how the longer‐term impacts of the more direct demand factors (fares, service levels) often show themselves in changes in car ownership levels, activity patterns (i.e. where people live, work, shop, socialize, etc) and land‐use development.

Part II reviews the current state of knowledge on the effects of changes in fare levels and quality of service and of the introduction of various traffic and transport measures (traffic restraint, bus priority, etc): it outlines current methodology on costing public transport services and draws the supply and demand sides together in a consideration of particular strategies which are at the disposal of the operator, the planner and the policy maker.     

National policy towards cars: the federal republic of Germany

Although much of the early technical development of the automobile occurred in Germany, the spread of car ownership within Germany was relatively slow up to 1933. Besides the general economic situation, this was due to the high costs of purchasing and running a car. With deliberate promotion of automobility by the national‐socialists after 1933, the pace of motorization proceeded more rapidly until the outbreak of World War II. Immediately after the war, motorization was slow to regain momentum but by the middle fifties, after the initial phase of post‐war reconstruction, the rapid build‐up of cars began again and has continued ever since. By 1986, the West German car fleet exceeded 27 million and 80% of motorized passenger kilometres were made by car.

This rapid post‐war growth was made possible by a liberal transport policy which reacted to growing car use by adaptation and provision of the necessary infrastructure. The adverse effects of vehicular traffic on the environment and on the urban quality of life moved policy at the end of the sixties towards stronger support for urban public transport and regulations for noise and exhaust emissions of automobiles. Also, the high toll of death and injuries from road accidents made improvement of road safety another important policy objective. So far, however, measures taken have fallen short of requiring changes in driver behaviour. Although there is widespread awareness of the environmental and accident costs of automobility, there is a reluctance to legislate (or for people voluntarily) to modify driving behaviour for social objectives.

This paper presents, briefly, the main instruments that have been applied in West Germany to achieve car‐related transport policy objectives, including the latest modifications in the tax system intended to foster the use of low‐emission vehicles. Possible future directions of policy towards the car, depending inter alia on changes in government, are also explored.     

Acquisition,efficiency and scale economies: An analysis of the British bus industry

The British Bus industry has undergone considerable transformation since privatization. Five major operators have emerged to dominate the market, a position almost exclusively attained through acquisition. This paper reviews the economies of scale argument commonly cited for this change and gives an overview of the acquisition process. It questions whether this argument gives a complete explanation for this industry development. For 58 individual companies, the level of technical efficiency attributable to firms operating at or near the optimum level of output is examined over 5 years to determine if mergers in practice have resulted in scale economies. Technical efficiency is estimated using data envelopment analysis, under assumptions of constant and variable returns to scale. Efficiency scores are then regressed on a time trend and a merger dummy to test whether acquired firms' efficiency has significantly improved above the average. It was found that over the period, efficiency had improved. This improvement, however, cannot be wholly attributed to the achievement of economies of scale. More specifically, there has been an improvement in the internal efficiency of acquired firms and some scale economies within group companies, the latter of which may have resulted from the eradication of competition.     

Technical characteristics and efficiency of urban bus companies: The case of Spain

The aim of the present study is twofold. First, to provide new information concerning the technical characteristics of urban bus companies on the basis of a sample of medium and large-size cities in Spain. Second, to analyze the degree of efficiency of those companies and to quantify the reasons for this efficiency. The results should be useful in evaluating possible changes in public policies relating to urban transport, specifically changes in the way the market is organized and in pricing.The analysis is carried out by estimating a cost function. The sample is made up of a panel data set consisting of observations of nine Spanish companies that operated during the period 1983–1995. The specified functional form is translogarithmic. The output unit of measure adopted is bus*kms run. The cost function includes the network length for each company, thus permitting evidence concerning economies of density and economies of scale.The use of panel data allows us to estimate the cost function, taking into account that each company is affected by the specific characteristics of each individual city, the different features of the network in question and by different levels of efficiency. The economies of scale have been calculated, taking into account that the features of the network and of the city – represented by their specific individual effect – will vary with the company's level of output.Finally, an analysis is made of the relative productive efficiency of the companies, as well as of the variables likely to influence that efficiency.     

Changes in multi-mode bus transit efficiency, 1988–1992

This paper examines the claim that US bus transit productivity has declined in recent years. It does so with reference to a piecewise-linear best-practice (DEA) production frontier, computed for multi-modal bus transit between 1988 and 1992. Efficiency is measured both by a Russell (static) and Malmquist (dynamic) measure of productivity change. The principal finding is that, overall, bus transit efficiency has improved slightly over the period.     

Applications of Random-Utility-based Multi-region Input–Output Models of Transport and the Spatial Economy

Abstract

An introduction to random-utility-based multiregional input–output models used for the purpose of spatial economic and transport interaction modelling is provided. The main methodological developments and important results of a dozen applications from the years 1996–2013 are described. This is followed by an outlook of potential future directions. Further research is mainly needed in five areas: (a) overall validation of the method, perhaps through back-casting applications on infrastructure plans with observed trade impacts; (b) extensions of trade coefficient models to add realism and improve accuracy; (c) the use of multi-scale modelling to capture interdependencies between geographical scales and to improve the representation of exports and imports; (d) improvements in the representation of price effects, as well as innovation and technological progress, by way of variable technical coefficients; and (e) a deeper investigation of the algorithm used to include elastic selling prices.     

Deregulation in Polish Rail Transport

Abstract

A phenomenon new to the Polish situation—the deregulation of rail transport—is presented. Despite its primarily legal nature, deregulation also implies various economic, socio‐political and spatial consequences. The relatively short period over which partial deregulation of public transport in Poland has been in effect (i.e. since 2000) ensures that the issue has not been taken up by Polish geographers as a research field. However, it has been of interest to Polish economists. Deregulation is a phenomenon of primary importance, with direct implications for the character, quality, type, intensity and spatial differentiation of transport (including freight and passenger traffic) within the market economy. This paper, therefore, presents the impact of the recent changes in the legal system (as regards deregulation) on the current pattern of railway connections of the major carriers. As the majority of these originate beyond the Polskie Koleje Państwowe (Polish State Railways) Group, they can be said to be independent of the main former state carrier.     

Retrospect and prospect of public transit privatization in China

As the most populous country in the world with a heavy reliance on public transit, China's public transit privatization has a global significance. China's post‐Mao economic reform and establishment of market‐oriented economy have stimulated its public transit privatization at a very fast pace. The largest Chinese cities have been spearheading the implementation of different privatization measures, such as granting franchises, company merger, company reorganization, public/private partnership, responsibility systems, and many others. All these privatization efforts have yielded preliminary successful results, even though some obstacles are encountered. In the future, new privatization‐related laws are expected to be enacted, government functions and business functions would be further separated, privatizing other public transit services besides operation would take place, and some negative impacts associated with privatization would be mitigated.     

When it comes to container port efficiency,are all developing regions equal?

In this paper we carry out a container port performance analysis of the developing world between 2000 and 2010, using both parametric and nonparametric approaches. From a unique dataset – our sample covers 70 developing countries, 203 ports, and 1750 data points–, we examine the evolution and drivers of productivity and efficiency changes across developing regions. We show that productivity growth rates between 2000 and 2010 vary significantly and that this heterogeneity is explained by pure efficiency changes rather than scale efficiency of technological changes. Therefore, we carry out a detailed efficiency analysis to determine the drivers of port efficiency. Time series results show an upward trend for port efficiency in developing regions, as it increased from 51 percent in 2000 to 61 percent in 2010. Our analysis indicates that private sector participation, the reduction of corruption in the public sector, improvements in liner connectivity and the existence of multimodal links increase the level of port efficiency in developing regions.     

Testing a Framework for the Efficiency Assessment of Road Safety Measures

Abstract

The objective of this research is to develop and test a framework for efficiency assessment of road safety measures and evaluate its use in decision‐making. An exhaustive review of standard methodologies and practices related to cost‐effectiveness and cost–benefit analyses is carried out for that purpose. Moreover, a number of case studies are performed, concerning the efficiency assessment of various road safety measures in different countries, covering different types of road safety measures (user‐, vehicle‐ or infrastructure‐oriented, policy or enforcement, etc.), ranging from national to local levels of implementation and including both ex ante and ex post evaluations. From the results conclusions are drawn on the efficiency of different road safety measures and the related determinants. Furthermore, the case studies reveal a number of methodology and data issues for which further research is required. The procedures and barriers involved in the use of efficiency assessment techniques at different levels of decision‐making are also highlighted by means of feedback received during and after the various case studies. On the basis of these results, a framework for the promotion, implementation and evaluation of efficiency assessment in road safety decision‐making is proposed. A particular set of recommendations is also presented regarding the treatment of barriers (fundamental, institutional or technical) within the efficiency assessment itself and the related decision‐making process.     

Matatu: A Case Study of the Core Segment of the Public Transport Market of Kampala,Uganda

Abstract

In Uganda, public transport is provided by a four‐tiered public transport system, with the Matatu (usually Toyota cabin‐transporters of 1990s make) as its backbone, providing the widest, densest and cheapest connectivity. The article shares findings of a survey on perceptions, profiles and aspirations of drivers/conductors/stage personnel and of passengers. They show that entering a career within the Matatu business opens choices and promises inclusion into a relatively strong social network. For passengers, the Matatu offers a cost‐effective opportunity to commute to places of work, transport goods and connect with business partners. The findings also point to limitations of the current public transport system, with emphasis on lacking client care, e.g. fare cheating by conductors. There is a need to better understand the dynamics of urban transport systems against the background of expanding urbanization in low‐income countries. This article has attempted to contribute to that need.     

An empirical assessment of the CO2-sensitive productivity of European airlines from 2000 to 2010

Due to the ongoing increase in the number of commercial flights, greenhouse gas emissions from aviation are expected to rise significantly. Balancing the pursuit of productivity growth with environmental-footprint control policies comprises a long-term regulatory challenge. In this light, the main goals of the present paper are: (i) to measure the CO₂ emissions of European airlines from 2000 to 2010, (ii) to compute airlines’ productivity in developing an environmental-sensitive productivity index, (iii) to compare the obtained results with those resulting from a traditional index, and (iv) to identify the drivers affecting productivity changes. Our results show that on average, airlines’ relative CO₂ emissions have decreased. Although the airlines we studied experienced an average productivity increase—both considering and not considering negative externalities production—environmentally sensible productivity growth is lower than traditional productivity growth. Finally, we find that improvements in load factor as well as a combined increase in stage length and aircraft size affect productivity changes positively, while fuel efficiency is significant only in the case of a CO₂-sensitive measure of productivity.     

Productivity changes in Taiwan's port industry incorporating environmental regulations on harbor water quality

Abstract

This paper evaluates the productivity changes in Taiwan's port industry for the period 2003–2007. Based on a ‘three-year-window’ data envelopment analysis method, Luenberger productivity indicators are employed to estimate the productivity changes that account for the success of attempts by port agents to control harbor water quality. This is one of the typical environmental concerns in port operations that prior studies on port productivity changes over time have not considered. The results show that the productivity of Taiwan's port industry has experienced growth over the study period, regardless of whether water quality has been considered or not. At a disaggregated level, however, if a port agent has succeeded in controlling water quality, but we do not consider it, the results will misclassify the agent by understating the port's productivity.     

Man and his transport behaviour Part 4a. User response to price changes: application of the ‘threshold’ concept

Summary

(1) The response of an individual consumer to change in such characteristics as price will be to change behaviour at a critical point, a ‘threshold’ at which a change of behaviour is perceived to be beneficial.

(2) Most choices can be viewed as binary, for example, between pairs of transport modes. A cumulative normal distribution of responses will give an S‐shaped curve, the mid‐point being at the average threshold value.

(3) An aggregate demand curve should show the response of a given group of people to a range of price changes at one point in time. Most curves derived from revealed behaviour do not permit this. To some extent, a demand curve must be derived from interviews and other tests, giving hypothetical behaviour. Such methods are used in non‐transport consumer tests, and work by Brög et al. gives a similar picture for transport users, supporting the concept of the S‐shaped curve.

(4) Allowance for frequency of trip‐making modifies this picture, suggesting that a smoother curve may be appropriate for some conditions, such as non‐work trips. These approaches may be combined by use of catastrophe theory, with two control factors. The hysteresis effect is found around the threshold where repeated changes in the basic stimulus produce successively smaller responses.

(5) There is some evidence of symmetrical response by public transport users to real increases and reductions in cash‐paid graduated fares, but this is not the case where different forms of pricing are involved.

(6) An example of threshold effects in private transport may be found in the monitoring of tolls on the Itchen Bridge by Atkins. Demand became particularly sensitive to price in a certain range.

(7) In the public transport field, there is similar evidence from the experience of introducing flat or zonal fares where graduated fares previously applied. Where travelcards are sold, the effect is much greater, and cases such as the West Midlands show little if any effect on sales despite real price increases. Here, trips are about 7% higher than would have been expected for the same revenue target, had graduated fares been retained. However, it may well be possible to exceed the threshold, especially where fares simplification and increases are combined, as the Trondheim experience suggests.