An environmental cost-benefit analysis of LNG as a maritime fuel in the Arctic

Abstract

As environmental regulations continue to drive a transition away from the extremely polluting heavy oil based fuels traditionally utilized for maritime transport towards alternative fuels, liquefied natural gas is emerging as a viable compliance option. This transition is of particular importance to the Arctic region, where escalating interest in development activities pose significant risks to a relatively undeveloped, yet particularly environmentally vulnerable area. Due to the importance of the Arctic region to the global environment, the prospect of increased development activity and associated maritime traffic within the area has wide ranging implications extending well beyond the region. By taking into account the perspectives of governance actors at varying levels and through the use of cost-benefit analysis, this study will provide an evaluation of the environmental, political and economic implications of a transition towards liquefied natural gas being utilized as a maritime transport fuel in the Arctic region.