The Economics of East Asian Integration
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The Economics of East Asian Integration

A Comprehensive Introduction to Regional Issues

Edited by Masahisa Fujita, Ikuo Kuroiwa and Satoru Kumagai

This study is intended to be the most comprehensive textbook on economic integration in East Asia. It introduces the reader to various issues related to the topic such as institutional building of FTAs; production networks and the location choice of MNEs; R & D and innovation; infrastructure development and transport costs; international migration and service trade; monetary integration; regional disparity and poverty. It also deals with critical energy, environmental and agricultural concerns. Each chapter contains ample data and rigorous analyses, complemented by illustrative box articles.
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Chapter 17: Energy Bottlenecks and Cooperation

Nobuhiro Horii


Nobuhiro Horii 17.1 INTRODUCTION The purpose of this chapter is to explore the issue of whether energy supply will become a bottleneck that hampers the economic development of Asian nations, and, if that is the case, to also explore what kinds of measures should be taken. This in turn leads to the question of whether measures for regional energy cooperation are feasible, and if so, how to promote them. We will explore what measures the Asian nations should take to safeguard their energy supply subsequent to the recent changes and increasing price volatility in the energy market. In Section 17.2, the author will analyse the energy structure in the Asian region based on macro data and explore the necessity of energy cooperation. In Section 17.3, the author will evaluate the ongoing progress of energy cooperation within the Asian region and issues associated with such cooperation. In Section 17.4, based upon the developments in the emerging economies as represented by China, which is the second largest energy consumer, the author will explore a new situation for energy cooperation in Asia following the drastic price fluctuations in the energy market. In Section 17.5, I will analyse the high tensions among the Asian countries caused by China’s overseas investments in its efforts to secure its energy supply, and expound on the necessity of high-level energy cooperation in Asia. To conclude, the author will propose recommendations toward the needed energy cooperation. 17.2 ENERGY STRUCTURE IN THE ASIAN REGION 17.2.1 Past and Current Energy Supply...

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