An Economic and GHG Analysis of LNG in Hawaii

Makena Coffman (), Paul Bernstein (), Sherilyn Wee () and Clarice Schafer ()
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Makena Coffman: UHERO, University of Hawai�i at Manoa
Paul Bernstein: University of Hawai�i at Manoa, UHERO
Sherilyn Wee: UHERO, University of Hawai�i at Manoa
Clarice Schafer: UHERO, University of Hawai�i at Manoa

No 2014-10, Working Papers from University of Hawaii Economic Research Organization, University of Hawaii at Manoa

Abstract: Hawaii currently meets the majority of its electricity needs through costly oil-fired generation causing rates to be nearly four times the national average (EIA, 2013a). The �shale gas revolution� has led to rapidly declining natural gas prices within the continental U.S. The emergence of a natural gas market that is de-linked from oil prices has renewed Hawaii�s interest in natural gas imports. Potentially lower natural gas prices as well as the view that it will help to reduce greenhouse gas (GHG) emissions and increase energy supply security through domestic sourcing are major reasons why the State and key stakeholders are deliberating over importing large amounts of natural gas in liquefied form (liquefied natural gas or LNG). This study uses detailed models of Hawaii�s electric sector and overall economy to estimate the impacts of Hawaii importing LNG for use in the electric sector.

Pages: 61 pages
Date: 2014-10
New Economics Papers: this item is included in nep-ene and nep-env
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