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 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
Phillip Lipscy
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Education has provided the critical foundation for Asia’s rapid economic growth. However, in an increasingly globalized and digital world, higher education faces an array of new challenges. While the current strengths and weaknesses of educational systems across Asia differ considerably, they share many of the same fundamental challenges and dilemmas.

The fourth annual Stanford Kyoto Trans-Asian Dialogue examined challenges and opportunities in reforming higher education in Asia. At its core, the challenge facing every country is how to cultivate relatively immobile assets—national populations—to capture increasingly mobile jobs with transforming skill requirements. This raises fundamental questions about skills needed for fast-paced change, domestic inequality, the role of government, and choices of resource allocations.

Scholars and top-level administrators from Stanford University and universities across Asia, as well as policymakers, journalists, and business professionals, met in Kyoto on September 6 and 7, 2012, to discuss questions that address vital themes related to Asia’s higher education systems. These included:

  • Can higher education meet the challenges of economic transformations?
    As skill requirements change with the increasing use of IT tools that enable manufacturing and service tasks to be broken apart and moved around, how can higher education systems cope? How can education systems address the increasing need for global coordination across languages and cultures? How can countries deal with demographic challenges, with developed countries facing overcapacity and developing countries with younger populations facing an undercapacity of educational resources?
  • How are higher education systems globalizing?
    What are the strategies for the globalization of higher education itself? How are universities positioning themselves to attract top talent from around the world, and what are their relative successes in achieving this? What are the considerations when building university campuses abroad? Conversely, what are the issues surrounding allowing foreign universities to build within one’s own country?
  • How can higher education play a greater role in innovation?
    What is the interplay between private and public institutions and research funding across countries, and what are the opportunities and constraints facing each? What is the role of national champion research initiatives? For developed East Asian countries, a focus on producing engineers raised the economic base, but many are discovering that they are still not at the leading edge of innovation. What are ways to address this dilemma? For developing countries, the challenge is how to improve basic education from the level of training basic factory workers to creating knowledge workers. How might this be accomplished? Is there room for a liberal arts college model?
  • What are the challenges and opportunities in reforming higher education?
    What are effective ways of overcoming organizational inertia, policy impediments, and political processes that hinder reform? What are the debates and issues surrounding ownership, governance, and financing of higher education?

The Walter H. Shorenstein Asia-Pacific Research Center (Shorenstein APARC) established the Stanford Kyoto Trans-Asian Dialogue in 2009 to facilitate conversation about current Asia-Pacific issues with far-reaching global implications. Scholars from Stanford University and various Asian countries start each session of the two-day event with stimulating, brief presentations, which are followed by engaging, off-the-record discussion. Each Dialogue closes with a public symposium and reception, and a final report is published on the Shorenstein APARC website.

Previous Dialogues have brought together a diverse range of experts and opinion leaders from Japan, South Korea, China, Vietnam, Thailand, Indonesia, Singapore, India, Australia, and the United States. Participants have explored issues such as the global environmental and economic impacts of energy usage in Asia and the United States; the question of building an East Asian regional organization; and addressing the dramatic demographic shift that is taking place in Asia.

The annual Stanford Kyoto Trans-Asian Dialogue is made possible through the generosity of the City of Kyoto, the Freeman Spogli Institute for International Studies at Stanford University, and Yumi and Yasunori Kaneko.

Kyoto International Community House Event Hall
2-1 Torii-cho, Awataguchi,
Sakyo-ku Kyoto, 606-8536
JAPAN

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Corporate Affiliate Visiting Fellow
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MBA

Mao Xie is a corporate affiliate visiting fellow with the Walter H. Shorenstein Asia-Pacific Research Center (Shorenstein APARC) for 2012–13. Xie has over 20 years of work experience in China's petroleum industry. He participated in the restructuring of China National Petroleum Corporation (CNPC) and China Petroleum and Chemical Corporation (Sinopec) in the late 1990s, and in the listing of PetroChina (the listed arm of CNPC) in international stock markets in 2000. He was also involved in the formulation and implementation of CNPC/PetroChina’s oil products marketing strategy, and in the designing of the oil products marketing and retailing management system. Xie has participated in the consolidation and specialized management of PetroChina’s city gas business since 2008, and played a part in the formation of a complete industrial chain of PetroChina’s gas business. He also contributed to the designing and implementation of PetroChina’s city gas organizational structure.  Xie received his bachelor's degree in petroleum storage and transportation from Harbin University of Commerce and his MBA from Zhejiang University.

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Corporate Affiliate Visiting Fellow
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MS

Kazuaki Osumi is a corporate affiliate visiting fellow at the Walter H. Shorenstein Asia-Pacific Research Center (Shorenstein APARC) for 2012-13.  Osumi has held positions at Japan’s Ministry of Economy, Trade and Industry (METI) for about 10 years, where he has led policy making projects.  He has worked in the Electricity and Gas Industry Department; Information and Communication Electronics Division; Industrial Finance Division; and the Nara Prefectural Government (temporary transfer).  His latest position at METI was as deputy director for the Policy Evaluation and Public Relations Division.  He received a bachelor's degree in engineering and a master of science from the University of Tokyo.

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Corporate Affiliate Visiting Fellow
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PhD

Chengbao He is a corporate affiliate visiting fellow at the Walter H. Shorenstein Asia-Pacific Research Center (Shorenstein APARC) for 2012-13.  Since 2005, He has been the vice deputy director of the Science and Technology Management Department of PetroChina.  He is responsible for the R&D management of the refining and chemical businesses of PetroChina and for the intellectual property management.  He graduated from Tianjin University with a master's degree in chemical engineering in 1990.  After graduating, he worked at the Dalian Petrochemical Company (DPC) for 16 years, serving as the vice president in 2002.  DPC became the largest refinery in China which had a crude oil capacity of 400kBPSD.  During the period from 2002 to 2005, He was responsible for the technology of DPC's capacity expansion project.  In 2012, He graduated from the University of Houston with an Executive MBA degree.

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Corporate Affiliate Visiting Fellow
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Yasuaki Hanai is a corporate affiliate visiting fellow at the Walter H. Shorenstein Asia-Pacific Research Center (Shorenstein APARC) for 2012-13.  Hanai has more than eight years of experience in energy markets working for NEC Corporation.  Most recently, Hanai was responsible for business development in the areas of environmental protection and energy management systems.  Hanai graduated from Meiji University with a bachelor's degree in mechanical engineering informatics.

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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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This report provides one of the first coherent, readable narratives of the Fukushima nuclear disaster—what happened in the first few days. It is based on new sources available in Japanese and National Diet testimonies, and is an objective overview of events as they unfolded, rather than an ideologically positioned effort of advocacy. The report goes on to analyze the institutional and governance aspects of Japan’s nuclear oversight, highlighting the fundamental problems that surfaced during the disaster that stem from deeper structural issues. The report also draws upon expertise from a conference held at Stanford University in February 2012 to analyze the politics and industry structure of Japan’s electric power sector, making concrete recommendations for reorganizing the power industry and government oversight structure.

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Shorenstein APARC Working Paper Series
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Kenji E. Kushida
Kenji E. Kushida
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Sarah Bhatia
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Scarborough Shoal, a tiny rocky outcropping and lagoon off the west coast of the Philippines, sits at the center of the latest South China Sea tug-of-war. Protesters took to the streets in Manila on May 11 to criticize China’s support of fishermen who entered the disputed territory a month ago and sparked a yet unresolved naval standoff between the Philippines and China. On May 9, while ships from both sides maneuvered in the area, Manila's secretary of defense assured Filipinos that if Beijing attacked, Washington would come to the country’s defense.  

That expectation had been strengthened in Manila in November 2011 when the visiting American secretary of state, Hillary Clinton, referred to the South China Sea as the “West Philippine Sea.” Clinton’s slip of the tongue was not a major diplomatic incident. But some Flipinos saw it as a sign of U.S. support for their government's maritime claims.

Washington’s refusal to side with any of the claimant states had not changed. What had changed was the level of American concern. In the November 2011 issue of Foreign Policy Clinton had defended the idea of a “pivot” toward Asia, meaning a renewed U.S. focus on Asia after a decade of intense military activity in Afghanistan and Iraq.

The term “pivot” has fallen out of favor in Washington, but the Obama administration’s heightened interest in Asia is real and ongoing, says Donald K. Emmerson, director of Stanford’s Southeast Asia Forum. He recently discussed the nuances of what he describes as an important but “lopsided pivot.”

How does the pivot fit into the larger global picture?

In the continuing debate as to whether the United States is in decline, the key question is: relative to what? Certainly, if we compare the situation now with the period immediately after World War II, the United States is less powerful relative to the power of other states. But 1945 ushered in a uniquely unipolar moment in American history. Americans had escaped the physical devastation wreaked on Europe and much of Asia. Germany and Japan lay in ruins. Twenty million Russians were dead. China’s long-running civil war would soon resume. Suddenly America had no credible competitors for global power.

Today? Conventional wisdom holds that Asia has become the center of gravity in the global economy. Yet even if we use purchasing power parity rather than exchange rates to measure the American share of world GDP, that share has only modestly decreased. Meanwhile, China’s remarkable rise may be leveling off. The evidence is less that the United States is in secular decline than that the world is changing in ways to which Americans need to adapt if they are to regain economic health. If the pivot facilitates that adaptation, it will have been a success.

Do you interpret the pivot to the Asia-Pacific as more hype or reality?

The pivot is definitely a reality, but the reality is partly about symbolism and atmospherics. The pivot conveys reassurance, particularly to Southeast Asia, that the United States cares about the Asia-Pacific region and that it is willing to cooperate more than before with the Association of Southeast Asian Nations (ASEAN). Part of that is simply “showing up”—a willingness to attend ASEAN regional meetings. Another part of the pivot, however, involves raising the American security profile in the region, which has so far strengthened ASEAN’s diplomatic hand in dealing with China’s sweeping claim to the South China Sea.

How has the pivot been received and interpreted in Asia?

Generally speaking, the pivot has been welcomed in Southeast Asia, despite worries that if it becomes an effort to contain China, a Sino-American cold war could result. The specific responses of Southeast Asian governments have differed, however, on a spectrum from passive acquiescence to active support.

In Japan, the rotation of prime ministers in and out of office has understandably focused that country’s politics more on domestic concerns, and the still not fully resolved disposition of U.S. forces on Okinawa has drawn energy from the bilateral relationship.

As a “middle power,” South Korea has been supportive of multilateral frameworks and solutions. Seoul is pleased to see a renewed American interest in working with Asians in multilateral settings such as ASEAN and the East Asia Summit.

China’s response has varied between cool and hostile. The foreign ministry has treated the pivot with some equanimity compared with the hostility of those in the People’s Liberation Army who view increased American involvement in Asia as a threat to Chinese aims and claims, especially regarding the South China Sea. China’s foreign policy is the outcome of contestation between various groups inside the country that do not necessarily see eye to eye on how best to handle the United States.

What do you see as the main implications, repercussions, and complications of the pivot?

The pivot, as Hillary Clinton advertised it in her Foreign Policy article, signals a shift in U.S. priorities away from Iraq and Afghanistan. For a time following the 9/11 attacks on America in 2001, the United States tended either to neglect Southeast Asia or to treat it as a second front in the “war on terror.” Economically, the pivot implies an acknowledgment that if America is to prosper in this century it will have to pay closer attention to Asia as an engine of global economic growth. Diplomatically, the pivot implies that with regard to Asian states, Washington cannot merely manage its relations bilaterally as the hub where their spokes meet, but must cultivate multilateral diplomacy as well. Militarily, the pivot implies that even while the American global force posture is drawn down in some parts of the world, it needs to be upgraded in Asia in response to Asian and American concerns over the terms on which China’s rise will take place.

A major constructive repercussion of the pivot has been the evolution of China’s own diplomacy in Southeast Asia. Previously China had disavowed multilateral diplomacy with Southeast Asians over claims to the South China Sea—a bilateralist strategy that in Southeast Asian eyes resembled an effort to “divide and rule.” America’s willingness to reach out to ASEAN and take part in ASEAN events has helped diplomats in any one Southeast Asian country to resist having to face China alone. Multilateral discussions, involving China and meant to prepare the way toward an eventual Code of Conduct, are now underway.

But as we saw recently during Hillary Clinton’s visit to the Philippines, it is important for Washington to maintain its independence and impartiality while facilitating peace in the region.

Complications? Yes, there is a danger that Washington could be dragged into supporting, or appearing to support, the claims of one of the Southeast Asian parties to the dispute. The Obama administration is aware of this risk, however, and I strongly doubt that an American official will again refer to the “West Philippine Sea.” 

A more serious complication in the longer run may arise from the pivot’s emphasis to date on Asian-Pacific security, and its relative lack of attention to creating and cultivating American economic opportunities in Asia.

China’s economic footprint in Asia is large and growing. It has moved up to become the main trading partner of many countries that used to trade proportionally more with the United States. An unbalanced relationship in which China saves and lends what Americans borrow and spend is unhealthy for both countries, and it cannot last. The pivot should forestall an invidious division of labor whereby Washington through the Seventh Fleet subsidizes the regional peace that enables Asians to prosper doing business with China. A higher priority needs to be placed on promoting American trade and investment in Asia, including China.

The Obama administration is hoping to persuade more Asian economies to join an arrangement called the Trans-Pacific Strategic Economic Partnership (TPP), but the bar that it sets is high. The TPP’s strict protections for the environment, labor, and intellectual property rights and its comprehensive cuts in both tariff and non-tariff barriers to trade have raised its quality but lowered its appeal, especially to the region’s larger economies. Meanwhile, anticipated cuts in American budgets for defense will only intensify the need to refocus the pivot on economic as well as military access to Asia.

Related Resources

Foreign Policy: “America’s Pacific Century”
November 2011 article by Hillary Clinton introducing the concept of the "Asia pivot."

Stanford Daily: "Obama pivots policy toward Asia"
Summary of Donald K. Emmerson's May 1, 2012 talk.

LinkAsia: "Treat Scarborough Shoal Incident as a 'Wake Up Call'"

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In this session of the Shorenstein APARC Corporate Affiliate Visiting Fellows Research Presentations, the following will be presented:

 

Yasunori Kakemizu, "Strategy of CATV in the Competitive TV Market: Open vs. Closed Models"

After prospering for more than a half-century in the United States, the cable industry is taking on a new competitor, Over-The-Top providers (OTT). OTT providers are a product of the information technology revolution that emerged from the invention of Internet protocol of the late 20th century. In his research presentation, Kakemizu tries to answer the question: What is the strategy of the cable industry in the United States and what will happen to it in the near future? Kakemizu analyzes the current threat and opportunity facing cable television companies, focusing on the strategies against OTT, such as Netflix and Hulu.

 

Hideaki Koda, "Driving the Electric Vehicle Forward: Reshaping Car Sharing with EV and ICT"

Should the all-electric vehicle challenge the traditional car head-on in the mainstream market? The answer may be "no" if you look back on the history of disruptive innovations. An innovative technology at its dawn often succeeds first in a smaller, untapped market where its strengths shine and its weaknesses are shadowed (or even turned into strengths). It then enters the mainstream market over time by achieving more maturity, as typically shown in the computer market. Then where is the market for the electric vehicle? It might be car sharing, which is thought to be a potentially large market. Koda discusses how to combine electric vehicles and car sharing with information and communications technology (e.g. Big Data processing) to achieve a win-win solution for all by taking advantage of the unique characteristics of the electric vehicle.  

 

Haiming Li, "Competing Strategies for China's Large Commercial Banks"

Competing strategies are critical to China's large commercial banks, as they determine future direction of development for these banks. Research shows that following five strategies, namely a strategy for lead changes, a strategy for globalization, a strategy for diversification, a strategy for systematic risk management, as well as a strategy for establishing a decision-making support system, need to be adapted. Coordinated implementation of these strategies will enhance the competitiveness of China's large commercial banks both home and abroad.

 

Yoshimasa Waseda, "Nantotechnolgoy for Fuel Cells: The Impact and Analysis of the Status Using Patent Information"

Judging from the need to reduce increasing dangers of future global climate change, clean energy has become more important and is a key issue for future development. Fuel cells are a candidate for achieving clean energy in the future although they currently have some disadvantages. Many researchers study the application of nanotechnology for fuel cells to solve these disadvantages using the unique phenomena of nanomaterials. In this presentation, Waseda discusses the impact of nanotechnology for fuel cells and analyzes the status of each region using patent information.


Philippines Conference Room

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Corporate Affiliate Visiting Fellow
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MS

Yasunori Kakemizu is a corporate affiliate visiting fellow at the Walter H. Shorenstein Asia-Pacific Research Center for 2011–12. Kakemizu has more than 12 years of experience in media markets working for Sumitomo Corporation, one of Japan's major trading and investment conglomerates. Most recently, Kakemizu worked for Jupiter Telecommunications Co., Ltd. (one of Sumitomo Corporation's affiliated companies), and was responsible for service and business development.

Kakemizu received his bachelor's and master's degree in engineering science from Osaka University. 

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Yasunori Kakemizu Speaker Sumitomo Corporation
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Corporate Affiliate Visiting Fellow
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MS

Hideaki Koda is a corporate affiliate visiting fellow at Shorenstein APARC for 2011-12.  Prior to joining Shorenstein APARC, he had been working at Mitsubishi Electric Corporation for 15 years.  Following the national policy called e-Japan Strategy, he had been engaged in designing, developing and deploying information systems for the Japanese Government and the Supreme Court of Japan, as well as coordinating with clients, engineers and vendors as a project manager.  He obtained his bachelor's and master's degrees in Electric Engineering from Waseda University.

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Hideaki Koda Speaker Mitsubishi Electric
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Corporate Affiliate Visiting Fellow
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MS

Haiming Li is a corporate affiliate visiting fellow at the Walter H. Shorenstein Asia-Pacific Research Center for 2011–12.

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Haiming Li Speaker Industrial and Commercial Bank of China
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Corporate Affiliate Visiting Fellow
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MS

Yoshimasa Waseda is a corporate affiliate visiting fellow at Shorenstein APARC for 2011-12.  Prior to joining Shorenstein APARC, he has worked for the Japan Patent Office (JPO) since 1999.  He has worked as a patent examiner, handling patent applications in the field of semiconductor device manufacturing.  In 2010, he was in charge of policy planning of information searching.  He obtained his BS and MS in Metallurgy and Ceramics Science from Tokyo Institute of Technology.

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Yoshimasa Waseda Speaker Japan Patent Office
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