Sustainable total factor productivity of transport: considering safety issues and environmental impacts

Economy, environment, and safety are three important components of sustainable transport. This paper proposes a productivity measurement standard that comprehensively considers economic growth, environmental impact, and safety issues, namely sustainable total factor productivity (STFP). We measure the growth rate of STFP in transport sector of OECD countries in terms of Malmquist-Luenberger productivity index by applying data envelopment analysis (DEA). It is found that the growth rate of total factor productivity in transport sector can be overestimated if safety is ignored. In addition, we discuss the influence of socio-economic factors on the measurement results, finding that there exists a threshold on the impact of environmental regulation intensity on the growth of STFP in transport. That is, STFP increases with environmental regulation intensity if it is smaller than 0.247, while STFP decreases if it is larger than 0.247.