ABSTRACT
This chapter examines the main sources of path dependency, which affect and/or constrain Japan's future energy policy options. It explains the institutional structure of Japan's political economy and energy policy-making process, which remains dominated by vested interests centred on Ministry of Economy, Trade and Industry (METI). The chapter outlines the evolution of Japan's energy supply and demand balance, arguing that a quick move away from fossil fuels and towards renewable energy is unlikely. In particular, the Ministry of International Trade and Industry (MITI) emerged as a central coordinating player in the energy game. MITI was a major proponent in establishing the Agency for Natural Resources and Energy (ANRE) in 1974 in order to expand the bureaucratic infrastructure necessary to achieve policy objectives. The Japan Atomic Energy Commission (JAEC) and since 2012, the Nuclear Regulation Authority (NRA), decide on matters related to research, development, utilization and safety of nuclear energy, including regulatory and licensing matters.
