Public pricing policies and multidimensional efficiency in urban public transport: Evidence from French operators

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.