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Environmental Cost and Universal Service Obligations in the Postal Sector
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François Boldron
Published/Copyright:
September 12, 2011
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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Articles in the same Issue
- Editorial Introduction
- Competition, Pricing and Universal Service in the Postal Sector: An Introduction
- Article
- Postal Service Pricing Incentives Following the Introduction of Price Cap Regulation
- The Effect of Flexible Pricing on Entry into the U.S. Letter Market
- Welfare and Pricing of Mail in a Communications Market
- Environmental Cost and Universal Service Obligations in the Postal Sector
- Universal Service Financing in Competitive Postal Markets: One Size Does Not Fit All
- What is an Unfair Burden? Compensating the Net Cost of Universal Service Provision
- The Universal Postal Service after the Lisbon Treaty: a True Step Forward?
- The Effect of Unobserved Heterogeneity in Stochastic Frontier Estimation: Comparison of Cross Section and Panel with Simulated Data for the Postal Sector
- Letter Traffic Demand in the UK: An Analysis by Product and Envelope Content Type
