Energy consumption trends in high growth Asian economies before and after 1986

In 1986, world oil prices declined sharply. Lower oil prices have been favourable to economic growth and price stability in Asia. However, oil consumption has also been growing rapidly in developing Asian countries including those dependent on imported oil. The increasing dependence on oil as a source of energy since 1986 is a striking reversal of the previous trend. In their pursuit of rapid industrialization, Asian countries have neglected energy conservation and diversification strategies. Unless energy policy is redirected, countries like Korea, Thailand and the Philippines could be seriously hurt by a sharp rise in oil prices. An increase in oil prices is almost inevitable in the next few years.     

Natural gas pricing policies in Southeast Asia

The very dynamic economies of Southeast Asia have recently been experiencing a rapid increase in energy demand. Parallel to this development, there has been an increase in the utilization of indigenous natural gas resources. This article reviews gas-pricing policies in the region, which partly explain the rise in gas utilization. Although diverse, energy pricing policies in Southeast Asia address the common objective of enhancing domestic gas production and utilization.
The article concludes that a more rational gas-pricing policy framework is emerging in the region. In global terms, gas pricing in the region tends to converge in a market-related framework, despite the many different pricing objectives of individual countries, and the predominance of non-economic pricing objectives in certain countries (especially gas-rich nations). Specifically, governments have been flexible enough to follow global trends and initiate changes in contractual agreements (pricing and profit-sharing), giving oil companies more favourable terms, and encouraging continued private investment in gas development. At the same time, promotional pricing has also been used to increase utilization of gas, through set prices and adjusted taxes achieving a lower price level compared to substitute fuels.
For an efficient gas-pricing mechanism, refinements in the pricing framework should be undertaken, as demand for gas approaches existing and/or forecast production capacities.     

Managing Asia's environmental crisis: EQM opportunities for remediation and technology transfer

Conditions of environmental pollution and degradation in Asia are among the worst in the world. Rapid economic growth and industrialization over the past half century have accelerated the pollution of air, water, and land resources in a region with the world's largest concentration of population. As the economics of Asia recover from financial crisis in the late 1990s, they will face a more serious environmental crisis in the early years of the 21st century. Remediation of soil and water contamination will become a stronger concern in the region, as the human health impacts become more visible and widespread. Although environmental remediation is only beginning to emerge in Asia as a solution to problems of natural resource degradation, the authors show how U.S. firms with experience in quality environmental management and biological remediation technologies will find new opportunities for exports and technology transfer. Environmental technology and services firms interested in Asia must understand both the opportunities for and barriers to operating in Asia.     

Marine shrimp aquaculture and natural resource degradation in Thailand

Rising demand for shrimp in the developed nations has helped to foster a dramatic growth in marine shrimp aquaculture, particularly in South America and South Asia. In Thailand, Marine shrimp aquaculture is now an important earmer of foreign exchange. The growth in Production has been achieved through the expansion of the culture area and the adoption of intensive production methods. The conversion of near-shore areas to shrimp culture, however, is proving to have many consequences that impinge on the environmental integrity of coastal areas. This paper reviews the development of Thailand's marine shrimp culture industry and examines the nature of the environmental impacts that are emerging. It then discusses the implications these have for rural poor and the long-term viability of the culture industry.     

Oil to 2000

Current surplus oil production capacity had its origins in the price increases of the 1970s. Those increases encouraged both energy conservation and the entry of new producers. Recent increases in oil demand reflect the belief among energy users that in real terms in the long term, prices will be stable. There is good reason to believe that this will be so, even at the current rate of increase it will be 15 years before demand matches current capacity. Given that situation it is difficult to see OPEC following any other pricing policy than the one currently in place. In the meantime market prices will further encourage vertical integration.     

Sustainability of the dimension stone industry in Zimbabwe—challenges and opportunities

The rapid expansion of the dimension stone and black granite industry in Zimbabwe in the 1990s, a result of increasing domestic and international demand for black granite, has ushered in new challenges and opportunities for producers and beneficiaries alike. This article investigates the social, environmental and economic challenges emanating from the export boom, the economic opportunities presented by the expanding market and the potential role the robust industry could play in regional economic development and poverty alleviation. The article evaluates the long-term sustainability of the dimension stone industry and recommends the reinvestment of revenues into diversification of the regional economic base, upgrading of local infrastructure, further processing of rough stone before export and encouragement of micro-businesses to enhance sustainability. The author argues for modification of economic incentives to incorporate environmental and social objectives in order to enhance sustainability. The need for a holistic approach to policies affecting the exploitation, processing and marketing of granite resources and their products is recognized. More research on the operations of the industry is called for.     

Industry's role in air quality improvement: Environmental management opportunities for the 21st century

More than 200 years ago, Adam Smith, the founder of modern economics, wrote in the Wealth of Nations that “…consumption is the sole end and purpose of all production; and the interest of the producer ought to be attention to…that of the consumer.” In recent years, the rapid growth of the world economy has given Adam Smith's maxim new meaning. The age-old desire for consumption grows unabated and increasing numbers of consumers around the world are attaching new value to the environmental quality of goods and services and expressing concern over the environmental impacts of industrialization. That concern is growing because more than 70 percent of the world's urban population live in areas where the air is seriously polluted and as many as 750,000 people—the majority in developing countries—die each year of ailments caused by air pollution.¹ Over the past 25 years, corporations throughout the world have made dramatic changes in the way they do business as more people come to understand how the ecological system works and how polluted air and water endanger human health. The key to increasing industry's participation in the drive for higher standards of air quality is the growing realization that effective environmental management, technological development, and technology dissemination are cost-effective and profitable business strategies. Global competition is making firms around the world more customer-conscious and, to the extent that consumers demand products that minimize environmental degradation and enhance the quality of their lives, businesses in every industry must respond in order to survive.² This article examines how changes in business practices, driven by a better understanding of how natural environments function, are converging to provide new opportunities for environmental management that go beyond regulatory compliance to reduce air pollution. Although sound and well-enforced environmental regulations are an essential foundation for improving air quality, command-and-control systems alone are unlikely to achieve the lower levels of pollution that will be necessary to achieve sustainable development in the 21st century. In cooperation with government, businesses in every industry can play crucial roles in achieving higher standards of air quality while at the same time maintaining acceptable levels of economic growth. We explore three ways in which corporations can contribute to environmentally sustainable development: (1) by adopting proactive environmental management systems that focus on air pollution prevention; (2) by developing new technologies for air pollution control and reduction; and (3) by transferring air pollution control and prevention technologies through international trade and investment.     

From the erosion of crude oil prices to reorganization of the oil industry

Comparison of data on world energy consumption for 1986, 1987 and 1988 indicates that the consumption of all forms of energy increased during the period, but the demand for oil increased at a lesser rate than that of other energy sources. Although the pattern varies between countries, the overall picture is one of increased use of natural gas, coal, nuclear and hydropower as an energy source. Part of the reason for the low growth in oil demand is the oil conservation measures put in place when oil was much more expensive, but may partly be due to the scepticism of many people about the future movement of oil prices. The likely continuation of a low growth market for oil has led some oil exporting countries to move downstream in an effort to secure a dependable market for their oil and oil products.     

The supply and demand outlook for energy in the Asia—Pacific region

Years of strong economic growth in the Asia—Pacific region have resulted in unprecedented increases in energy demand in the region, particularly for oil and gas. The supply of oil and gas to the region will become more problematic as the decade progresses. Already 50% dependent on imported oil, this figure will rise to nearly 65% by 2000. Because high rates of domestic oil demand growth among traditional petroleum exporters - Indonesia. China and Malaysia - will absorb exportable surpluses, the region will find itself dependent on the Middle East for at least 90% of its imported oil needs by 2000. Currently linked to oil, LNG prices cannot justify the investments needed to bring new greenfield projects on line. With demand expected to exceed 67 million tonnes (Mt) in 2000 and 100 Mt in 2010. over 50 Mt of new capacity will be needed; satisfying this demand will necessitate a new pricing structure for LNG, raising the price substantially above the relative price of crude oil.     

Exponential Growth, Animal Welfare, Environmental and Food Safety Impact: The Case of China’s Livestock Production

Developmental states are criticized for rapid “industrialization without enlightenment.” In the last 30 years, China’s breathtaking growth has been achieved at a high environmental and food safety cost. This article, utilizing a recent survey of China’s livestock industry, illustrates the initiating role of China’s developmental state in the exponential expansion of the country’s livestock production. The enthusiastic response of the livestock industry to the many state policy incentives has made China the world’s biggest animal farming nation. Shortage of meat and dairy supply is history. Yet, the Chinese government is facing new challenges of no less a threat to political stability. Production intensification has created a welfare crisis impacting the world’s biggest number of farm animals. The resulting food safety incidents are affecting consumer confidence and health. Untreated waste contributes to the nation’s environmental degradation. Developmental states may have a proud record of growth in the initial stage of industrialization. Their prospects for sustained development have long been questioned. China has come to an important juncture to march towards a sustained development.     

Sustainable development in Asia: the current state and policy options

Over the past decades, many Asian economies have achieved striking levels of economic growth. This economic growth has been necessary in order to fulfil the material needs and aspirations of growing populations. However, it has also been accompanied by substantial environmental degradation. While the precise interactions between economic growth, economic development and environmental degradation is subject to controversy and a comprehensive assessment of the Asian environment may be required to fully understand this relationship and the present conditions of the environment, it is argued in this paper that the achievement of sustainable economic development and the harmonizing of economic and environmental objectives will not be possible without deliberate policy interventions. Such policies need to incorporate a regional dimension in the form of institution building, in parallel to the concept of regional economic growth. The article focuses on the current problems of environmental and natural resource degradation in Asia, within a possible conceptual framework of impoverishing or unsustainable economic growth, and suggests a set of policies that need to be adopted in order to solve current difficulties.     

The great metals boom: A retrospective

The metals boom that ran from 2003 to 2008 represented the most powerful and sustained such boom since the Second World War. As the boom gathered momentum, the notion began to emerge that commodities were at the beginning of a multi-year ‘super cycle’ driven by demand growth in the emerging economies and, in particular, China. The persistence of the boom helped sustain this belief right up to the point when metal prices collapsed in the second half of 2008. Looking back over the period, much of what occurred can be readily explained by the unusual strength of the demand shock and the lagged response of the supplying industry, with prices receiving an additional boost from the activities of commodity investors. There is, however, some evidence to suggest that the combination of downward pressure on the costs of manufactured goods and upward pressure on the costs of mineral commodities which accompanied the boom marked a shift in the terms of trade between these two product groups. This in turn seems to have brought to an end the sustained decline in real terms metal prices that occurred in the years following the boom of the 1970s. In sum, the key structural change taking place may not have been on the demand side of the industry as the super cyclists maintained, but on the supply side.     

World phosphate supply

The Bureau of Mines investigated the resources, costs, capacities, market relationships, and short- and long-run supply of phosphate rock and phosphoric acid. The 206 mines and deposits evaluated in 30 market economy countries (MECs) contain an estimated 35.1 billion tonnes of recoverable phosphate rock (demonstrated resource level). US resources are sufficient to satisfy both the domestic market and an export market for phosphate products well beyond 2000. Resource depletion at current producers, however, means new property development (with higher costs) will be required if US production levels are to be maintained. Existing worldwide capacity can satisfy expected demand through the early 1990s. Expansion at existing mines or low demand growth could mean no new property development is required before the late 1990s. Worldwide, almost $8 billion could be required for the development of new phosphate rock properties between now and 2000, given 3% annual growth in demand. Though profit may not be the principal motivation for development of government-owned operations, most properties that could develop in the 1990s would require price increases of 20–50% to break even. To earn a 15% rate of return on investment, prices must rise to nearly double the $23–271 tonne US price level of 1988. Current US phosphate rock and phosphoric acid producers appear to be competitive (on a variable cost basis) with many other suppliers in major markets. New US properties will have higher variable costs than current producers; however, they are competitive with most projected new foreign development. The US phosphoric acid industry will most likely face increased competition as more of the foreign phosphate rock producers develop the capacity to process rock into phosphoric acid and other fertilizer products.     

Energy Conservation in Rapid-Growth Economies of Asia

Energy demand, including demand for petroleum, is expected to increase at a faster rate in the rapidly-developing nations of East and Southeast Asia than elsewhere in the world through the turn of the century. In the aggregate, the countries of this region are heavily dependent on imported oil, coal and natural gas. Rapid industrialization, electrification and increased consumer demand for energy-consuming durable goods and housing underlie the expected strong growth in energy consumption. Substantial scope for greater economy in energy-use exists in the industrial and transport sectors but effects in these areas will require effective management and institutional support in addition to getting prices right. In the context of balance of payments and external debt considerations, and the continued growth of energy consumption in East and Southeast Asia, improving energy conservation will be of great importance in lessening the likelihood that future economic development will be constrained by energy problems.     

Environmental regulation of exploration and mining operations in Asian countries

This paper offers a new perspective on the environmental laws in Asian nations affecting the exploration, mining, and reclamation activities of the mineral resource industry: the perspective of the senior government officials in those countries, whose job is to enforce these new environmental laws. The article presents the results of a 1998 survey of national environmental officials in Asia conducted by the Colorado School of Mines and the Metal Mining Agency of Japan. Officials in 10 diverse countries—Cambodia, China, Indonesia, Lao PDR, Malaysia, Myanmar, Mongolia, Philippines, Thailand and Vietnam—responded to a detailed questionnaire covering applicable laws, agencies, protected areas, covered mineral activities, financial assurance, environmental impact assessment, public involvement, environmental standards, permit and reclamation requirements.
The survey confirms that Asian nations are part of the global trend towards national government regulatory structures that balance mineral development objectives with environmental considerations. The survey also shows developing regulatory systems (some embryonic, some more mature) utilizing a combination of mining and environmental acts, and often an 'insider' perspective of the national officials administering the laws. While that perspective is not without its biases (not least the rigor of enforcement), it may nevertheless be of use in company planning. The emerging regulatory picture contradicts the conventional notion that it is the 'lower' level of regulation in Asia that is attracting foreign direct investment in mining.     

Copper: after the boom

Copper demand is expected to turn down in the latter part of 1989 and then dip further in 1990. The slump in demand is expected to be modest, however, much less severe than the post oil shock recessions of the mid-1970s and early 1980s. By 1991 a healthy growth is expected to resume. However, major expansions to production capacity are in track and excessive production is expected to keep the copper market in surplus for the next five years. Thus, prices are expected to decline sharply and remain at quite low levels through the mid-1990s.     

Dissent and descent: tracing Canada’s environmental governance from regulatory beginnings to dismissal and reversals by the Harper government

Since Confederation in 1867, official Canadian settler government policy on the environment has sought to simultaneously preserve “wilderness” and exploit natural resources for market gain. In the 1960s, the nascent North American modern environmental movement pushed for stronger regulation on pollution and toxics – and a more institutionalised state-led response to environmental problems emerged. Throughout the last five decades, three principal “eras” of federal government reaction have emerged in response to mounting scientific evidence and public pressure to act on environmental issues. The first, from the late-1960s to mid-1980s, saw the development and implementation of early environmental policy and programmes. The second era, from the mid-1980s to mid-2000s co-occurred alongside the rise of the sustainable development paradigm, and is marked by the Canadian government’s attempt at leadership on the global stage. The third era, from the mid-2000s to 2015, demonstrates a shift from environmental regime-building and multilateral collaboration toward rollbacks and obstructionism. Under the leadership of Prime Minister Stephen Harper, the government of Canada reversed decades of progress and cooperation on the environment and sustainable development through its muzzling of government scientists, superficial co-optation of climate policy, rollbacks of environmental legislation and disparagement of environmental activists. In total, by shifting the federal government from a position of ineffective benevolence on environmental issues to one of contention and antagonism, the Harper government’s approach represents a departure from Canadian environmental governance norms and sought to remake the identity of Canada as an energy superpower inextricably tied to its oil and gas industry.     

Sustainable energy development in rural Asia

In considering the prospects for sustainable energy, most studies have focused on developments in the urban and industrial areas. However, in Asia where the bulk of the population continues to live in rural areas, it is essential to monitor the changes occurring in the countryside. Therefore, this paper examines the developments taking place in rural energy in Asia in general and focuses specifically on the situation in China. It is observed that a total reorganization of the energy picture is occurring in rural China with regard to both conventional and non-conventional energy, as a result of the huge market for power and fuel created by rapid economic growth. This has led to new distribution networks for electricity (with the Chinese Government following the example of the US Rural Electrification Administration), fossil fuels and renewable energy systems. The growing affluence of the population coupled with rapid industrialization is producing far-reaching changes in the transportation structure as well as in the household energy structure. The situation in China is seen to be comparable to that in other East and Southeast Asian countries, particularly those which combine a rapidly growing industrial sector with a large rural population engaged in agriculture, such as the Republic of Korea, Thailand, and Indonesia.     

工业园区的绿色转型

开发区是我国改革开放的产物,已经走过了30多年的发展历程,作为国家战略实施载体,成为全国引进外资密集、高新技术集聚、经济增长迅猛的区域。随着经济的迅速发展和园区的快速扩张,开发区面临着土地资源既浪费严重又非常紧缺、能源供给紧张、环保压力增大、发展后劲不足等问题。金桥开发区结合自身特点,以国家生态工业示范园区建设为契机,着力改造传统制造业,大力发展生产性服务业、战略性新兴产业、高新技术产业,通过优化第二产业,发展第三产业,实现了园区产业结构的转型。同时,以生态创建为抓手,积极引导园区企业加强节能环保,使整个园区的可持续发展能力获得提升。     

International oil market – new directions

This article focuses on changes in the international petroleum industry during the past 20 years and examines some major trends, especially since the oil price collapse of 1986. The resumption of rapid increases in oil demand since 1986 in the developed market economies and the developing world has already led to a pronounced production shift to OPEC member countries where output increased by 6.6 million barrels per day or, 37% since 1985. Cutbacks in petroleum investments in non-OPEC countries are likely to result in even more dependence on the vast proved oil reserves of OPEC. However, the gap between peak output and sustainable production capacities in OPEC has narrowed and there is an urgent need for sizeable investments to expand capacities. Such investment programmes are already being implemented by transnational oil corporations in countries such as Indonesia and Nigeria where the companies had retained equity participation. In other countries such as Iraq and Venezuela where oil operations had been nationalized, transnational oil corporations are being invited to participate in new arrangements for oil production. New arrangements are also being considered in Eastern Europe and the USSR. New understandings, dialogue and cooperation between oil-consuming and producing countries will be necessary for the security of investments, supplies and markets in this process. The unanswered question is whether such cooperation can be achieved in time in order to avoid yet another energy crisis.