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Public pricing policies and multidimensional efficiency in urban public transport: Evidence from French operators
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DOI：10.1016/j.rtbm.2026.101659.png)
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Abstract
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Pricing policy is a central instrument in contemporary urban public transport (UPT) policies aimed at promoting sustainable mobility. In France, UPT systems are strongly regulated and subsidized by public authorities, making fare design a key lever for balancing accessibility, efficiency, and financial sustainability. This study assesses the efficiency of 180 urban public transport operators (UPTOs) in France over the period 1995-2016 by estimating three distinct dimensions of performance: supply, demand, and commercial efficiency. Efficiency analysis is conducted using a stochastic frontier approach with a True Fixed Effects (TFE) specification. The analysis then examines how pricing-related characteristics-including reduced tariffs, free tariffs, and pricing principles-are associated with variations in efficiency through an explicit inefficiency modeling framework. To strengthen the robustness of the findings, a Propensity Score Matching (PSM) analysis is conducted as a complementary check, allowing operators subject to different pricing arrangements to be compared with observationally similar counterparts. The results indicate that affordability-oriented pricing policies are systematically associated with higher demand efficiency, while supply and commercial efficiency tend to decline, particularly under fare-free pricing schemes. Overall, the findings highlight the presence of multidimensional efficiency trade-offs linked to UPT pricing policies and underscore the importance of context-sensitive fare design in supporting sustainable urban mobility.
Keywords:
Pricing policy
Public transport efficiency
Urban mobility
True fixed effects model
Propensity score matching
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