2014 Volume 14 Pages 51-64
This paper analyzes the process of Japan’s energy policy after “March 11” from the standpoint of the hypothesis that power market liberalization restricts nuclear power development. In major advanced countries, power market liberalization starting from 1990s has often caused the constrained development of nuclear power stations which require huge initial investment and carry high risk. In contrast, nuclear power had been developed steadily in Japan, while market liberalizationwas limited.
This situation was so dramatically changed after March 11 that DPJ government made a political decision of nuclear phase-out in 2012 in parallel with market liberalization. However, the new LDP government has once again returned back to the promotion of nuclear power, while advancing the market liberalization. The seemingly contradictory combination of nuclear power policy and market liberalization was driven by the Ministry of Economy, Trade and Industry. METI is now strategically trying to directly intervene the nuclear power businesses for their continuation as well as to discretionally manage the market competition based on re-regulation.
