Analysis of Alaska Transportation Sectors to Assess Energy Use and Impacts of Price Shocks and Climate Change Legislation

Abstract

We analyzed the use of energy by Alaska’s transportation sectors to assess the impact of sudden fuel prices changes. We conducted three types of analysis: 1) Development of broad energy use statistics for each transportation sector, including total annual energy and fuel use, carbon emissions, fuel use per ton-mile and passenger-mile, and cost of fuel per ton-mile and passenger-mile. 2) Economic input-output analysis of air, rail, truck, and water transportation sectors. 3) Adjustment of input-output modeling to reflect sudden fuel price changes to estimate the potential impact on industry output and employment. Alaska air transportation used approximately 1.9 billion gallons of fuel annually; 961 million gallons were used for intra-state and exiting Alaska flights. Water transportation used 101.8 million gallons annually, approximately 84.3 million gallons for intra-state and exiting segments. Railroad and truck transportation used 5.1 and 8.8 million gallons annually, respectively. Simulated fuel price increases resulted in an estimated $456.8 million in value-added losses to the Alaska economy through the increase in cost of transportation services, as well as an equivalent loss in income to Alaska household of $26.8 million. A carbon emissions tax would have the greatest impact on the cost of air transportation services followed by water, trucking and rail.