The impact of international sanctions on environmental performance

Abstract

This paper studies the impact of international sanctions on environmental performance by using the panel fixed effect model for 22 sanctioned states over the period 2002–2016 while considering several cases of international sanctions (unilateral, plurilateral, U.S., EU, UN, economic, and intensity) and measures environmental performance by the Environmental Performance Index (EPI). Overall, we find that the imposition of unilateral, plurilateral, U.S., EU, and economic sanctions has a significantly negative impact on EPI, dropping their EPI scores respectively by 0.114, 0.060, 0.045, 0.084, and 0.063, while a level increase of intensity results in EPI dropping by 0.028. Moreover, the simultaneous-equation models and Sobel tests show that the intermediate effect about GDP between international sanctions on environmental performance is significantly negative. We believe that our empirical findings can contribute to policy formulation by those sanctioned countries.