Environmental Cost and Universal Service Obligations in the Postal Sector

Boldron François, Borsenberger Claire, Helmuth Cremer, Philippe De Donder, Joram Denis and Roy Bernard
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Boldron François: La Poste
Borsenberger Claire: La Poste
Joram Denis: La Poste
Roy Bernard: La Poste

Review of Network Economics, 2011, vol. 10, issue 3, 18

Abstract: This paper studies the relationship between USO and environmental concern in the postal sector. We concentrate on the obligation to deliver mail on a D+1 basis. We examine how the USO should be designed to properly account for the environmental cost in a variety of situations ranging from a first-best setting to a (Ramsey-type) second-best world with differentiated or uniform prices. We show that, it may be desirable to scale down the D+1 obligation and to restrict it to specific geographic areas. We also study how postal products should be priced to account for their environmental impact.

Keywords: universal service obligation; postal sector; environmental cost (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (1)

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DOI: 10.2202/1446-9022.1226

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