Alaska’s Infrastructure and Limits to Growth

Economic development and population movement in the United States have historically been linked to the development of infrastructure—for transportation and for power. Much of Alaska is currently undeveloped; thus, a critical question in guiding Alaska’s future is the extent to which a similar link exists here. In addition, infrastructure for economic development and diversification competes for funds with infrastructure for basic human needs—water, sewer, etc. Thus, the state’s ability to use infrastructure to promote development is also limited by budget constraints. We conclude that infrastructure is critical for the development of many of Alaska’s resources. However, much of the required supporting infrastructure is only marginally useful for other purposes. Pipelines, roads, bridges, and port developments are required to move products to market, but Alaska is ill-suited for many of the small-scale developments that accompanied infrastructure extension in the United States. And only by geographical chance can two large-scale resource deposits share infrastructure. However, improvements justified by a megadeposit may allow development of other smaller, nearby deposits.