The impact of international sanctions on energy security

Abstract

This study first investigates different types of sanctions on energy security by employing data from a panel of target countries covering the period 1996–2014 and using the panel fixed effect model. Our evidence indicates that international sanctions do significantly negatively influence the energy security of target countries in some cases. Specifically, unilateral sanctions, U.S. sanctions, economic sanctions, and the intensity of sanctions have a significantly negative impact on energy security. However, plurilateral sanctions, EU sanctions, UN sanctions, and non-economic sanctions have no significant impact on the energy security of target countries. The results of endogeneity concerns are also consistent with the results of the basic regression analysis. Overall, our empirical findings merit particular attention from policy makers of target countries to ensure their energy security when facing international sanctions.