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Welfare Impact of Changes in the Scope of the USO

In: Postal and Delivery Innovation in the Digital Economy

Author

Listed:
  • George Houpis

    (Frontier Economics)

  • José María Rodríguez

    (Frontier Economics)

  • Christian Strobel

    (Frontier Economics)

Abstract

Estimating the cost of the Universal Service Obligation (USO) is becoming increasingly important in the regulation of the postal business. At least 13 Member States have calculated or are calculating the net cost of USO (Frontier Economics 2013). Out of the six countries reporting that the net cost of the USO was an unfair burden (CZ, EE, ES, IT, LT, NO), in four of them (ES, IT, PL, NO) public funding was used to finance the net cost (WIK 2013). When funded with revenues from the industry, one can argue that postal users are paying for the costs of the USO. When funded externally, the taxpayer is foregoing the provision of other public services.

Suggested Citation

  • George Houpis & José María Rodríguez & Christian Strobel, 2015. "Welfare Impact of Changes in the Scope of the USO," Topics in Regulatory Economics and Policy, in: Michael A. Crew & Timothy J. Brennan (ed.), Postal and Delivery Innovation in the Digital Economy, edition 127, pages 131-142, Springer.
    • Handle: RePEc:spr:topchp:978-3-319-12874-0_10
    DOI: 10.1007/978-3-319-12874-0_10
    as

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