Energy Market Integration In East Asia

East Asian nations through the dialogue between ASEAN and its partners have been promoting energy market integration (EMI) for a decade. The formation of the East Asian Summit (EAS) group in 2005 adds new momentum to the EMI course in the region. The objective of this edited volume is to present new insights into the understanding of EMI in East Asia and draw implications for further development. This book is the first publication of its kind exclusively focusing on EMI in East Asia. The chapters are written by a distinguished group of specialists in the field of energy policy, business and economics. The covered topics range from the general debates about EMI to regional policy responses. A variety of qualitative and quantitative methods are employed in this book. For qualitative methods, public goods theory and the comparative study method are two examples. The quantitative methods include economic growth theory, principle component approach, input-output table, computable general equilibrium (CGE) models and econometric techniques. Important policy implications can be drawn from the findings. One clear message is that EMI should be promoted actively but in a gradual, incremental manner. Other policy implications are related to inter-regional governance, infrastructure development and gas market integration. The content has not been published elsewhere and hence makes a unique contribution to the literature. There are also case studies of specific energy sectors such as petroleum and natural gas. Overall this book should be of interest to a wide audience such as academia, business analysts and policy makers.

East Asian nations through the dialogue between ASEAN and its partners have been promoting energy market integration (EMI) for a decade. The formation of the East Asian Summit (EAS) group in 2005 adds new momentum to the EMI course in the region. The objective of this edited volume is to present new insights into the understanding of EMI in East Asia and draw implications for further development. This book is the first publication of its kind exclusively focusing on EMI in East Asia. The chapters are written by a distinguished group of specialists in the field of energy policy, business and economics. The covered topics range from the general debates about EMI to regional policy responses. A variety of qualitative and quantitative methods are employed in this book. For qualitative methods, public goods theory and the comparative study method are two examples. The quantitative methods include economic growth theory, principle component approach, input-output table, computable general equilibrium (CGE) models and econometric techniques. Important policy implications can be drawn from the findings. One clear message is that EMI should be promoted actively but in a gradual, incremental manner. Other policy implications are related to inter-regional governance, infrastructure development and gas market integration. The content has not been published elsewhere and hence makes a unique contribution to the literature. There are also case studies of specific energy sectors such as petroleum and natural gas. Overall this book should be of interest to a wide audience such as academia, business analysts and policy makers.

This book presents a critical review of the status of energy security in Asia and suggests how a country or a region collectively can achieve energy security in two broad aspects. First, it analyzes how regional cooperation and energy trade can enhance energy security in the region. Second, it reviews how energy security can be ensured in national and regional general contexts. From the reviews and analyses, this book asserts that diversification and integration are key to ensuring energy security. It presents policy implications for enhancing energy security, especially in resource-rich as well as resource-poor developing countries in Asia.

Abstract: This paper provides an analysis of the two channels of regional integration: integration via markets and integration via agreements. Given that East Asia and Latin America are two fertile regions where both forms of integrations have taken place, the authors examine the experiences of these two areas. There are four related results. First, East Asia had been integrating via markets long before formal agreements were in vogue in the region. Latin America, by contrast, has primarily used formal regional trade treaties as the main channel of integration. Second, despite the relative lack of formal regional trade treaties until recently, East Asia is more integrated among itself than Latin America. Third, from a purely economic and trade standpoint, the proper sequence of integrations seems to be first integrating via markets and subsequently via formal regional trade agreements. Fourth, regional trade agreements often serve multiple constituents. The reason why integrating via markets first can be helpful is because this can give stronger political bargaining power to the outward-looking economic-oriented forces within the country.

The increased mobility and volume of international capital flows is a striking trend in international finance. While countries worldwide have engaged in financial deregulation, nowhere is this pattern more pronounced than in East Asia, where it has affected in unanticipated ways the behavior of exchange rates, interest rates, and capital flows. In these thirteen essays, American and Asian scholars analyze the effects of financial deregulation and integration on East Asian markets. Topics covered include the roles of the United States and Japan in trading with Asian countries, macroeconomic policy implications of export-led growth in Korea and Taiwan, the effects of foreign direct investment in China, and the impact of financial liberalization in Japan, Korea, and Singapore. Demonstrating the complexity of financial deregulation and the challenges it poses for policy makers, this volume provides an excellent picture of the overall status of East Asian financial markets for scholars in international finance and Asian economic development.

This book combines the fundamentals of industrial organization theories based on microeconomic foundations, applied econometrics and environmental and natural resource economics in undertaking a comprehensive review of reforms of the power sector and its impact on industrial and socio-economic performance. The book provides the reader with the intellectual groundwork necessary for understanding the workings and interactions of today’s reforming power markets such as in the ASEAN and East Asia that are striving to achieve the energy policy trilemma of affordability, energy sustainability and energy security. The topics addressed in this book include application of welfare theorems such as competition in and for the market in the electricity sector, market failures such as lack of electricity access, analysis of forecasting models under volatility, energy resource allocation such as renewable energy and competitive market designs of energy markets. Country-specific and region-specific case studies are used to analyze the progress and outcomes of market-driven electricity reforms across the reforming and advanced electricity markets. Therefore, the book derives policy lessons and provides policy recommendations in reforming power markets for the ASEAN and East Asia taking stock of more than three decades of global experience with power sector reforms. The electricity markets case studies are carefully chosen and supported by extensive data analyses as appropriate. This book on energy economics and policy is highly recommended to readers who seek an in-depth and up-to-date integrated overview about the evolving literature and status on electricity market reforms with a particular reference to Asia.