Hawaii: An Energy and Economic Analysis

Hawaii, in addition to being President Obama’s first U.S. state to call home, has the most expensive energy in the country. Because it is isolated from the U.S. mainland and it does not have oil, natural gas, or coal reserves of its own, its energy infrastructure and consumption are unique among the states. Because oil, natural gas, and coal are transportable, Hawaii depends heavily on these imported fuels to meet energy demand. Close to nine-tenths of Hawaii’s energy comes from petroleum, followed by coal and natural gas. Its electricity prices are over 3 times higher than the average electricity price in the nation. Because its main industry is tourism and because of its mild climate, Hawaii’s economy is not very energy intensive. In fact, per capita energy consumption in Hawaii is among the lowest in the nation. Due to heavy jet-fuel use by military installations and commercial airlines, the transportation sector is its leading energy-consuming sector, accounting for about one-half of the state's total energy consumption.