An Introduction to the Economy of Alaska

Abstract

Alaska’s geography—its location, climate, topography, and resources—have driven Alaska’s economy in the past and define and constrain its opportunities for the future. Alaska has abundant natural resources—oil, minerals, forests, fish. In the twentieth and twenty-first centuries, Alaska’s strategic location has contributed to the role of the military and more recently the international air cargo industry. Another Alaska natural resource--its natural beauty—represents an increasingly important natural resource. But Alaska’s remoteness from major markets, cold climate, mountainous topography, and permafrost make Alaska a costly place to extract resources compared with other parts of the world.