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State-Market Interaction in Hydrocarbon Sector: The Cases of Australia and Japan

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States and Markets in Hydrocarbon Sectors

Part of the book series: International Political Economy Series ((IPES))

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Abstract

Australia and Japan have much in common. Both countries are developed economies, located in the Asia-Pacific region, and are members of the International Energy Agency (IEA). Given these general similarities, one would anticipate that their governments adopt similar approaches to energy markets. However, this chapter demonstrates that there is much contrast in their respective approaches to energy markets. On one hand, in Australia, the government adopts a laissez-faire approach to energy markets, largely behaving as a facilitator of investment in upstream activities. The Australian hydrocarbon sector is dominated by international energy companies, which control both upstream and downstream sectors, and are responsible for supplying much of Australia’s energy. On the other hand, having first-hand experience from the 1970s oil crises, the Japanese government perceives energy resources as strategic commodities. Unlike in Australia, energy in Japan is securitized, where the government plays an active role in ensuring that Japan has access to uninterrupted supplies of affordable energy. Against this backdrop, this chapter explores contrasting approaches to hydrocarbon sector by the Australian and Japanese governments and highlights key similarities and differences between the two cases.

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Authors
  1. Vlado Vivoda
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Editors and Affiliations

  1. University of Tartu, Estonia

    Andrei V. Belyi (Senior Researcher) (Senior Researcher)

  2. University of Eastern Finland, Finland

    Kim Talus (Professor) (Professor)

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© 2015 Vlado Vivoda

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Vivoda, V. (2015). State-Market Interaction in Hydrocarbon Sector: The Cases of Australia and Japan. In: Belyi, A.V., Talus, K. (eds) States and Markets in Hydrocarbon Sectors. International Political Economy Series. Palgrave Macmillan, London. https://doi.org/10.1057/9781137434074_12

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