Efficient at What? The Independence of Efficiency Measures in Public Transit

Much of the public management literature focuses on public organizational efficiency as a singular construct, predominantly emphasizing cost minimization. This view, we argue, conflicts with sustainable management principles. Public sector organizations should not be driven solely by financial efficiency but also balance this with the pursuit of service quality and environmental sustainability. Moreover, achieving efficiency in one aspect does not guarantee efficiency in others, making it crucial to evaluate these dimensions separately. To demonstrate this, we analyze US public transit agencies, assessing their financial, service, and environmental efficiencies. Using the Triple Bottom Line model and a five-year panel dataset, we apply stochastic frontier analysis and factor analysis to examine the interactions among these metrics. We find that these three aspects are distinct and do not necessarily correlate. This finding is pivotal, highlighting the importance of clearly distinguishing between financial, service, and environmental efficiencies in public management research and practice.