Sustainable Pathways: An Integrated Dynamic Network Eco‐Efficiency Approach to Evaluate Passenger Road Transportation

Passenger road transport is a cornerstone of social connectivity and economic growth, providing essential mobility for millions while supporting trade, employment, and development. However, its environmental impact, particularly high emissions and energy consumption, presents a significant challenge for advancing sustainability, reducing carbon footprints, and fostering cleaner, more resilient environments. Addressing these concerns requires a comprehensive assessment of operational, economic, and environmental performance of transportation authorities. Yet, existing research treats passenger road transportation process as a “black‐box,” failing to capture their internal structures and multistage complexities. Also, conventional assessment frameworks often overlook undesirable outputs. Moreover, given the capital‐intensive nature of passenger road transportation units (PRTUs), single‐period optimization models may be inadequate for assessing long‐term efficiency. To bridge these gaps, this study introduces an innovative framework that integrates dynamic network data envelopment analysis with weak disposability reference technology. This approach evaluates PRTUs by accounting for both desirable and undesirable outputs while considering their network structure and temporal effects. Applying this framework to State Road Transport Undertakings (SRTUs) in India, we identify inefficiencies arising from capital misallocation and price controls. Empirical findings highlight the significant role of bus utilization and hired buses in enhancing SRTU efficiency, as demonstrated through fractional regression analysis. By offering a more nuanced understanding of PRTU performance, this study provides actionable insights for policymakers, enabling data‐driven decisions that enhance operational efficiency and promote sustainable transport systems.