EconPapers    
Economics at your fingertips  
 

The efficiency of Norwegian road toll companies

Morten Welde and James Odeck

Utilities Policy, 2011, vol. 19, issue 3, 162-171

Abstract: 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.

Keywords: Tolled roads; Efficiency analysis; Non-profit organisations; DEA; SFA (search for similar items in EconPapers)
Date: 2011
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7) Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S095717871100021X
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:juipol:v:19:y:2011:i:3:p:162-171

DOI: 10.1016/j.jup.2011.03.001

Access Statistics for this article

Utilities Policy is currently edited by D. Smith

More articles in Utilities Policy from Elsevier
Bibliographic data for series maintained by Haili He ().

 
Page updated 2020-05-02
Handle: RePEc:eee:juipol:v:19:y:2011:i:3:p:162-171