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Assessing the USO Impact on the Network Density Using Spatial Analysis Techniques

In: Postal Strategies in a Digital and Green Transition

Author

Listed:
  • Bruno Basalisco

    (Copenhagen Economics)

  • Mindaugas Cerpickis

    (Copenhagen Economics)

  • Lionel Gendebien

    (Copenhagen Economics)

  • Jacob Østermann

    (Copenhagen Economics)

Abstract

As part of the European Postal Service Directive (PSD), Member States must guarantee that the density of access points to the universal postal service fulfills users’ needs. To this end, Member States typically impose density requirements which constrain the Universal Service Provider (USP) to design its postal network in a way that ensures that postal services are accessible to all citizens, regardless of where they reside. These requirements impose significant costs on USPs who identify them as a primary driver of the net cost of the Universal Service Obligation (USO), (Copenhagen Economics, Main developments in the postal sector (2017-2021). Study for the European Commission, Directorate General for Internal Market, Industry, Entrepreneurship, and SMEs, 2022). In this paper, we develop an economic approach to assess the size of the gap between the network design that would have prevailed absent the USO density requirement and any USO density requirement.

Suggested Citation

  • Bruno Basalisco & Mindaugas Cerpickis & Lionel Gendebien & Jacob Østermann, 2026. "Assessing the USO Impact on the Network Density Using Spatial Analysis Techniques," Topics in Regulatory Economics and Policy, in: Anna Renata Pisarkiewicz & Timothy J. Brennan & Leonardo Mazzoni & Victor Glass (ed.), Postal Strategies in a Digital and Green Transition, pages 313-325, Springer.
    • Handle: RePEc:spr:topchp:978-3-032-00502-1_21
    DOI: 10.1007/978-3-032-00502-1_21
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