1. The Energy and Economic Competitiveness Workshop Outline of the Study 9 May 2016　Canberra, Australia
Ichiro KUTANI

2. Background
APEC region sees rapid increase of energy demand, particularly in developing economies.
Even though we sees rather mild price range recently, historically high level of crude oil prices and the Asian LNG price for past few years were became important political agenda items for some economies.
These facts indicate that it is now critical for APEC economies to address energy-competitiveness issues for their sound and sustainable economic development, while paying due consideration to other important energy related challenges such as energy security and environment protection.
It is important to note that energy will influence competitiveness through the following channels.
End-user prices (International prices, taxes and subsidies, domestic margins, etc.)
Energy efficiency
Availability of energy (Restriction on quality and quantity, and infrastructure)
At the same time, it is essential to acknowledge the diversities among APEC member economies in such areas as: economic development, economic structure, cost structure, endowment of energy resources, etc.

3. Importance of industrial sector
Share of industrial sector in GDP (value added, 2012)
Share of FEC by sector (2012)
FEC in industrial sector (2012)
source) OECD statistic, Chinese Taipei statistic
source) IEA 2014

4. Example of existing studies
IEA
“World Energy Outlook 2013”
Chapter 8 “Energy and competitiveness” points out that disparities in energy prices especially for natural gas and electricity have implications for economic competitiveness. The European Union and Japan see a strong decline in their shares of global exports of energy-intensive goods, while the United States sees an increase in its share of exports. EU
“Energy Prices and Costs (2014)”
The paper prepared by the European Commission argues that retail energy price rises in the EU create cost burdens on households and industry and affect Europe’s global competitiveness.
IEEJ
“Asia/World Energy Outlook 2013”
An enhanced unconventional oil/gas resource development in the world results in GDP increases for the US, China, India and Japan while decreasing GDP in the Middle East.

5. Work stream
Step 1
Collection and understanding of the latest study cases on the issue of energy and industrial competitiveness.
Step 2
Identify methodology for modeling analysis.
Examples)
・Effects of fuel and electric power costs.
・Effects of energy efficiency.
・Effects of energy cost in manufacturing cost.
Step 3
Data collection and understanding of the current status.
Step 4
Quantitative analysis.
Step 5
Deliver a policy recommendation.

6. Schedule

7. What are we going to discuss today?
How can we evaluate the result of quantitative analysis?
What would be a policy implication for member economies?

8. Any question or suggestion?

9. Thank you for your kind attention