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Environmental Cost and Universal Service Obligations in the Postal Sector

Author

Listed:
  • Boldron François

    (La Poste)

  • Borsenberger Claire

    (La Poste)

  • Cremer Helmuth

    (Toulouse School of Economics)

  • De Donder Philippe

    (Toulouse School of Economics)

  • Joram Denis

    (La Poste)

  • Roy Bernard

    (La Poste)

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.

Suggested Citation

  • Boldron François & Borsenberger Claire & Cremer Helmuth & De Donder Philippe & Joram Denis & Roy Bernard, 2011. "Environmental Cost and Universal Service Obligations in the Postal Sector," Review of Network Economics, De Gruyter, vol. 10(3), pages 1-18, September.
    • Handle: RePEc:bpj:rneart:v:10:y:2011:i:3:n:5
    DOI: 10.2202/1446-9022.1226
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    References listed on IDEAS

    as
    1. Helmuth Cremer & Philippe De Donder & François Boldron & Bernard Roy, 2008. "Social Costs and Benefits of the Universal Service Obligation in the Postal Market," Chapters, in: Michael A. Crew & Paul R. Kleindorfer (ed.), Competition and Regulation in the Postal and Delivery Sector, chapter 2, Edward Elgar Publishing.
    2. Helmuth Cremer & Firouz Gahvari & Norbert Ladoux, 2002. "Externalities and Optimal Taxation," Chapters, in: Lawrence H. Goulder (ed.), Environmental Policy Making in Economies with Prior Tax Distortions, chapter 14, pages 210-232, Edward Elgar Publishing.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Lindhjem Henrik & Pedersen Simen, 2012. "Should Publicly Funded Postal Services be Reduced? A Cost-Benefit Analysis of the Universal Service Obligation in Norway," Review of Network Economics, De Gruyter, vol. 11(2), pages 1-33, June.

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