Efficiency analysis of Seoul's urban bus agencies considering emissions

The Seoul Government reformed local public transport systems in 2004 to reduce vehicle emissions as well as get bus transit agencies to operate more efficiently and improve bus service levels. In this study, using the directional distance function, the efficiency of bus transit agencies was examined both with and without the consideration of emissions to show the importance of public transportation reforms. The analysis included 59 Seoul urban bus transit agencies in June 2005. The results showed that the number of efficient agencies and the efficiency score rankings differed depending on whether or not emissions were considered. Meanwhile, contracted bus agencies that operated on tendered routes were found to be more efficient than the remainder, regardless of the reduction in emissions.