Energy Industry and

Environmental Politics in Japan

Hang Nguyen – I32031

Summary

Oil market governance

Environmental movements

Environmental politic

Nuclear Power

Oil market governance Pre-war: foreign affiliates held a dominant position 1933: two proposals:

Monopoly; foreign firms would be forcibly acquired by the government

System of licensing of import and construct refinery capacity

Firms seek cartelization, resist mergers 1946: US occupation -> tie-ups in refining between

Japanese and US firms 1961: new industry law: gave the state the authority to

influence supply and pricing decisions. Government intervention international uncompetitive.

Oil market governance 1980s-1990s: domestic firms were small scale and lack

of diversification Seek support from policymakers Lobby to retain laws limiting imports and regulations

Partial liberalization

Legislators in the ruling LDP Shift of high-price environment

Environment movements Late 1960s: one of the most heavily industrialized

countries Pollution related health problems

Industries were quick to deny responsibility Local governments had no authorities to act

make pollution a campaign issue at the local level LDP feared a similar loss of control at the national level LDP & opposition parties reached general consensus on

emergency pollution measures LDP = “creative conservatism”

Environment movements Influence of the U.S Late 1970s: “Japan’s environmental movement had

been politically marginalized”. Implementation process: administrative guidance,

research, and tax incentives Local governments were permitted to create extra-legal

pollution control agreements

However, environmental movement = victims’ movement

Nuclear Fiasco 2011 Lack of transparency and accountability Serious and negative consequences for the government

in terms of public trust “both the central administration and the LDP were too

lenient in managing the electric power firms” Ethically suspicious rapport Financial handouts from government and industry

Political interests Endorsements and campaign support from power firms Old-Boy systems

Thank you for your attention