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Licensed Unlicensed Requires Authentication Published by De Gruyter September 12, 2011

Environmental Cost and Universal Service Obligations in the Postal Sector

  • François Boldron , Claire Borsenberger , Helmuth Cremer , Philippe De Donder , Denis Joram and Bernard Roy

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.

Published Online: 2011-9-12

©2012 Walter de Gruyter GmbH & Co. KG, Berlin/Boston

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