It is still too early to estimate with much precision the quantitative impacts of the devastating events in Japan on the global energy sector, as well as the effects on energy and economic activity in Japan. Nevertheless, some qualitative conclusions can be drawn about the near and medium effects on Japanese and global energy balances. Much more difficult and speculative are judgments about the effect of the nuclear accident that resulted from the natural disaster on the longer-term energy picture.
Presidents Hu and Obama created buzz earlier this week in Washington when they met on pressing bilateral issues, including US-China business and investment regulation, trade, currency imbalances and security concerns. US-China clean energy cooperation is an important part of that bilateral dialogue (see transcript of my intervention at a January 18 US-China Strategic Forum hosted by Brookings).
Cooperation between the two countries can yield big economic benefits. The world is recovering from the worst economic crisis since the Great Depression. In this context, taking advantage of clean energy opportunities is crucial to fueling a sustained global recovery.