In this report we examine the importance of ion and electron kinetic effects in the acceleration of electrons in small scale Alfven waves above the auroral oval. We implement a 1-D two-fluid MHD code approximating the effects of electron inertia and ion and electron temperatures to evaluate their role in accounting for the observed energies of field-aligned electron bursts found in coincidence with these waves above the auroral oval. FAST spacecraft data for a case study event characterized by large auroral ion energies and a hot plasma sheet is employed to define the plasma through which the wave propagates. It is found that strong kinetic effects at altitudes below 5 Earth radii may significantly reduce the amount of electron acceleration possible in the wave in terms of both energy and flux.