Energy

This image is having trouble loading!FSI researchers examine the role of energy sources from regulatory, economic and societal angles. The Program on Energy and Sustainable Development (PESD) investigates how the production and consumption of energy affect human welfare and environmental quality. Professors assess natural gas and coal markets, as well as the smart energy grid and how to create effective climate policy in an imperfect world. This includes how state-owned enterprises – like oil companies – affect energy markets around the world. Regulatory barriers are examined for understanding obstacles to lowering carbon in energy services. Realistic cap and trade policies in California are studied, as is the creation of a giant coal market in China.

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The Fukushima nuclear disaster was a critical juncture in the world’s relationship with nuclear energy, as well as Japan’s postwar political economy, society, and national psyche. The DPJ, and particularly Prime Minister Kan, were later widely criticized for mismanaging the disaster, contributing to the party’s loss of power. This paper closely examines the crisis as it unfolded, assessing the degree to which the government’s chaotic response can be attributed to the DPJ’s political leadership. It finds that the DPJ inherited a difficult hand when coming to power in 2009, with deep structural problems developed under the long LDP rule. Existing procedures and organizations were drastically inadequate, information and communications problems plagued decision-making and coordination. Kan’s leadership was, on balance, beneficial, taking control where the locus of responsibility and decision-making was ambiguous and solving several information and communication problems. This paper is one of the first readily accessible English language analyses examining this critical juncture, including a broadly readable account of primary government decision-makers as the disaster unfolded.

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Japanese Political Economy
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Kenji E. Kushida
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This paper analyzes the causes, responses, and consequences of the Fukushima nuclear power plant accident (March 2011) by comparing these with Three Mile Island (March 1979) and Chernobyl (April 1986). We identify three generic modes of organizational coordination: modular, vertical, and horizontal. By relying on comparative institutional analysis, we compare the modes' performance characteristics in terms of short-term and long-term coordination, preparedness for shocks, and responsiveness to shocks. We derive general lessons, including the identification of three shortcomings of integrated Japanese electric utilities: (1) decision instability that can lead to system failure after a large shock, (2) poor incentives to innovate, and (3) the lack of defense-in-depth strategies for accidents. Our suggested policy response is to introduce an independent Nuclear Safety Commission, and an Independent System Operator to coordinate buyers and sellers on publicly owned transmission grids. Without an independent safety regulator, or a very well established “safety culture,” profit-maximizing behavior by an entrenched electricity monopoly will not necessarily lead to a social optimum with regard to nuclear power plant safety. All countries considering continued operation or expansion of their nuclear power industries must strive to establish independent, competent, and respected safety regulators, or prepare for nuclear power plant accidents.

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Energy Policy
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Masahiko Aoki
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The world has undergone major drastic changes in the last two decades driven by several major factors, eg, explosion of human population and connectivity. Such changes seem further accelerated in recent years and it seems that our future becomes more uncertain and unpredictable. The Fukushima Nuclear Accident awakened us and led to creation of Independent Investigation Commission by the National Diet of Japan; The Commission Report revealed some of the fundamental issues of Japan’s nuclear policy. Meanwhile, multi-stakeholders’ engagement has become critical in various social affairs and in policy making domains within and across national boundaries, and has contributed in significant ways to affect the processes of addressing and impacting global agenda, such as climate change, food and water, energy, urbanization, biodiversity, human capital with shifting the balance of economy and power. In my view, the principles of our society may be changing quite fast heading somewhat differently from our conventional norm. The science community can and should contribute to these issues in nurturing future leaders, but in what way?

Kiyoshi Kurokawa is a graduate of University of Tokyo School of Medicine, trained in internal medicine and nephrology, in US 1969-84; Professor of Med, Dept Med ofUCLA Sch Med (79-84), Chair, Univ Tokyo Faculty of Med (89-96), Dean of Tokai Univ School of Med (96-02, President of Science Council of Japan (03-07), Science Advisor to Prime Minister (07-09), Board member of A*STAR (06-00), Bibliotheca Alexandria (04-08), Khalifa University (08- ), Okinawa Institute of Science and Tech (06- ), Global Science and Innovation Advisory Board of the Prime Minister of Malaysia (11-); President of Intl Soc Nephrology (97-99), Inst of Medicine of US Academies (92). Recently, chaired Fukushima Nuclear Accident Independent Investigation Commission by the National Diet of Japan (Dec 11-July 12). AAAS Scientific Freedom and Responsibility Award (2012), ‘100 Top Global Thinkers 2012” of Foreign Policy.

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Kiyoshi Kurokawa MD, President Speaker Science Council of Japan (2003-06)
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Former Henri H. and Tomoye Takahashi Senior Fellow in Japanese Studies at the Freeman Spogli Institute for International Studies
Former Professor, by courtesy, of Finance at the Graduate School of Business
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Takeo Hoshi was Henri and Tomoye Takahashi Senior Fellow at the Freeman Spogli Institute for International Studies (FSI), Professor of Finance (by courtesy) at the Graduate School of Business, and Director of the Japan Program at the Shorenstein Asia-Pacific Research Center (APARC), all at Stanford University. He served in these roles until August 2019.

Before he joined Stanford in 2012, he was Pacific Economic Cooperation Professor in International Economic Relations at the Graduate School of International Relations and Pacific Studies (IR/PS) at University of California, San Diego (UCSD), where he conducted research and taught since 1988.

Hoshi is also Visiting Scholar at Federal Reserve Bank of San Francisco, Research Associate at the National Bureau of Economic Research (NBER) and at the Tokyo Center for Economic Research (TCER), and Senior Fellow at the Asian Bureau of Finance and Economic Research (ABFER). His main research interest includes corporate finance, banking, monetary policy and the Japanese economy.

He received 2015 Japanese Bankers Academic Research Promotion Foundation Award, 2011 Reischauer International Education Award of Japan Society of San Diego and Tijuana, 2006 Enjoji Jiro Memorial Prize of Nihon Keizai Shimbun-sha, and 2005 Japan Economic Association-Nakahara Prize.  His book titled Corporate Financing and Governance in Japan: The Road to the Future (MIT Press, 2001) co-authored with Anil Kashyap (Booth School of Business, University of Chicago) received the Nikkei Award for the Best Economics Books in 2002.  Other publications include “Will the U.S. and Europe Avoid a Lost Decade?  Lessons from Japan’s Post Crisis Experience” (Joint with Anil K Kashyap), IMF Economic Review, 2015, “Japan’s Financial Regulatory Responses to the Global Financial Crisis” (Joint with Kimie Harada, Masami Imai, Satoshi Koibuchi, and Ayako Yasuda), Journal of Financial Economic Policy, 2015, “Defying Gravity: Can Japanese sovereign debt continue to increase without a crisis?” (Joint with Takatoshi Ito) Economic Policy, 2014, “Will the U.S. Bank Recapitalization Succeed? Eight Lessons from Japan” (with Anil Kashyap), Journal of Financial Economics, 2010, and “Zombie Lending and Depressed Restructuring in Japan” (Joint with Ricardo Caballero and Anil Kashyap), American Economic Review, December 2008.

Hoshi received his B.A. in Social Sciences from the University of Tokyo in 1983, and a Ph.D. in Economics from the Massachusetts Institute of Technology in 1988.

Former Director of the Japan Program at the Shorenstein Asia-Pacific Research Center
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Phillip Lipscy
Kenji E. Kushida
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As the East Coast cleans up from super-storm Sandy, Phillip Lipscy and Kenji E. Kushida point to important lessons from Japan's Fukushima nuclear disaster. They say more must be done to safeguard U.S. nuclear plants from natural disasters.

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Cars sit half-submerged in a flooded parking lot after super-storm Sandy tears through Long Island.
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Over a year and a half has passed since the Fukushima Nuclear Disaster that began with the earthquake and tsunami disaster that hit Japan’s Tohoku region on March 11, 2011. Much has been written about the Fukushima nuclear disaster, but a cohesive, objective, readable English language narrative of what exactly transpired as the disaster unfolded has yet to widely circulated. An understanding of how events unfolded in the Fukushima disaster is critical to deriving valuable lessons about nuclear power governance, politics, and societal preparedness. As countries such as China, India, and Brazil move to build new nuclear reactors to serve the energy needs of ever increasing numbers of ever-wealthier populations, lessons from Japan’s experience will only increase in significance.

The talk focuses on a narrative of the chaotic political and corporate responses as events developed rapidly at the Fukushima Dai-Ichi nuclear power plant. It also puts the Fukushima Dai-Ichi plant in comparative perspective among the three other nuclear power plants hit by the tsunami. Many of the details are likely to come as a surprise even to a well-informed audience: the absence of the power operator’s president and chairman for almost a full day as the crisis unfolded; chaos magnified by the emergency nuclear response headquarters set up in the Prime Minister’s office initially unable to receive cell phone signals or faxes; the dozens of emergency backup battery trucks arriving at the plant only to discover they could not connect to the reactors in crisis, and the like. The talk is based on the following report:  “Japan’s Fukushima Nuclear Disaster: Narrative, Analysis, and Recommendations".

Kenji Kushida is the Takahashi Research Associate in Japanese Studies at the Walter H. Shorenstein Asia-Pacific Research Center. He holds a PhD in political science from the University of California, Berkeley, and was a graduate research associate at the Berkeley Roundtable on the International Economy. Kushida has an MA in East Asian studies and BAs in economics and East Asian studies, all from Stanford University.

Kushida’s research interests are in the fields of comparative politics, political economy, and information technology. He focuses mainly on Japan with comparisons to Korea, China, and the United States. He has four streams of academic research and publication: institutional and governance structures of Japan’s Fukushima nuclear disaster; political economy issues surrounding information technology; political strategies of foreign multinational corporations in Japan; and Japan’s political economic transformation since the 1990s.

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Former Research Scholar, Japan Program
kenji_kushida_2.jpg MA, PhD
Kenji E. Kushida was a research scholar with the Japan Program at the Walter H. Shorenstein Asia-Pacific Research Center from 2014 through January 2022. Prior to that at APARC, he was a Takahashi Research Associate in Japanese Studies (2011-14) and a Shorenstein Postdoctoral Fellow (2010-11).
 
Kushida’s research and projects are focused on the following streams: 1) how politics and regulations shape the development and diffusion of Information Technology such as AI; 2) institutional underpinnings of the Silicon Valley ecosystem, 2) Japan's transforming political economy, 3) Japan's startup ecosystem, 4) the role of foreign multinational firms in Japan, 4) Japan's Fukushima nuclear disaster. He spearheaded the Silicon Valley - New Japan project that brought together large Japanese firms and the Silicon Valley ecosystem.

He has published several books and numerous articles in each of these streams, including “The Politics of Commoditization in Global ICT Industries,” “Japan’s Startup Ecosystem,” "How Politics and Market Dynamics Trapped Innovations in Japan’s Domestic 'Galapagos' Telecommunications Sector," “Cloud Computing: From Scarcity to Abundance,” and others. His latest business book in Japanese is “The Algorithmic Revolution’s Disruption: a Silicon Valley Vantage on IoT, Fintech, Cloud, and AI” (Asahi Shimbun Shuppan 2016).

Kushida has appeared in media including The New York Times, Washington Post, Nihon Keizai Shimbun, Nikkei Business, Diamond Harvard Business Review, NHK, PBS NewsHour, and NPR. He is also a trustee of the Japan ICU Foundation, alumni of the Trilateral Commission David Rockefeller Fellows, and a member of the Mansfield Foundation Network for the Future. Kushida has written two general audience books in Japanese, entitled Biculturalism and the Japanese: Beyond English Linguistic Capabilities (Chuko Shinsho, 2006) and International Schools, an Introduction (Fusosha, 2008).

Kushida holds a PhD in political science from the University of California, Berkeley. He received his MA in East Asian Studies and BAs in economics and East Asian Studies with Honors, all from Stanford University.
Kenji E. Kushida Takahashi Research Associate in Japanese Studies Speaker Walter H. Shorenstein Asia-Pacific Research Center
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Walter H. Shorenstein
Asia-Pacific Research Center
Encina Hall, Room C331
616 Serra St.
Stanford, CA 94305-6055

(650) 724-5656 (650) 723-6530
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Shorenstein Postdoctoral Fellow
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Daniel M. Smith was a postdoctoral fellow at the Walter H. Shorenstein Asia-Pacific Research Center (Shorenstein APARC) during the 2012–13 academic year.

He is an expert on Japanese politics whose research interests include political parties, elections and electoral systems, candidate recruitment and selection, and coalition government. During his time at Shorenstein APARC, he will be completing a book manuscript about the causes and consequences of political dynasties in developed democracies, with a particular focus on Japan.

Smith earned his PhD and MA in political science from the University of California, San Diego, and his BA in political science and Italian from the University of California, Los Angeles. He has conducted research in Japan as a Ministry of Education, Culture, Sports, Science, and Technology research scholar at Chuo University (2006–2007), and as a Fulbright IIE dissertation research fellow at the Institute of Social Science at the University of Tokyo (2010–2011). After completing his fellowship at Shorenstein APARC, he will join the Department of Government at Harvard University as an assistant professor.

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The Democratic Party of Japan (DPJ) came to power in 2009 promising significant transportation sector reform, but it has struggled to implement its proposals. Phillip Y. Lipscy argues that the DPJ's initiatives faltered due to the legacy of “efficiency clientelism.” Historically, Japanese transportation policy combined two imperatives: (1) encourage efficiency by raising the cost of energy-inefficient transportation, and (2) redistribute benefits to supporters of the incumbent Liberal Democratic Party (LDP). Because of the legacy of efficiency clientelism, DPJ campaign pledges—designed to appeal broadly to the general public by reducing transportation costs—ran up against the prospect of sharp declines in revenues and energy efficiency. Efficiency clientelism was well suited to political realities in Japan prior to the 1990s, but recent developments have undercut its viability. This raises profound questions about the sustainability of Japan's energy efficiency achievements.

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Journal of East Asian Studies
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Phillip Lipscy
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A new account of the Fukushima nuclear disaster revisits events as they took place in March 2011. The report, by Kenji E. Kushida, delves into the politics and institutions of Japan’s energy industry and offers recommendations for reforming it with a view of preventing such a disaster from occurring again.
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Water is injected into one of the reactors at the Fukushima nuclear plant, March 20, 2011.
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