Korean Energy Economic Review ISSN:1599-7057(Print) 에너지경제연구

Asia has been located on the center stage of oil market due to its oil demand increase based on rapid economic growth. But the necessity of oil security within Asia has been getting enhanced as its imports of crude oil from outside is considerably swelling. Therefore Asian major oil consuming countries such as Korea, China, Japan, and India have bolstered their oil policies related to oil security according to their economic circumstances. Oil stockpiling and taxation are representative policies among those policies and they are analysed using game theory to identify their optimal direction to maximize the social welfare of an oil consuming country. The results suggest that the higher possibility or the higher degree of oil supply shock or lower price of oil, the more oil stockpiling for an country while the higher supply risk of oil or lower economic dependence of oil, the higher oil taxation for an country to enhance oil security.