Analysis of import substitution policy with an emphasis on environmental issues based on environmental input–output (EIO) model

Economic Sanctions and Environmental Degradation in Iran

“…First, the result of estimated model confirms the effect of economic sanctions on environmental degradation in Iran during 1996-2019 with CO2 emissions, greenhouse gas emissions, and methane emissions indicators. This finding is in line with the findings by Fu et al (2020), McLean and Whang (2021), and Aghapour Sabbaghi and Naeimifar (2022) and against the study by Fotourehchi (2020) in the short run and the study by Le and Hoang (2021) for developing countries. It also provides empirical evidence for the theoretical perspective of Madani (2020) regarding the degradation effect of sanction on the environment, based on which it can be claimed that economic sanctions make it difficult to access equipment and technology related to decreasing pollution and also producing clean energies by targeting the economic capacities of Iran.…”

“…Obviously, these limitations decline production quality in the sanctioned states, and goals of economic growth along with lower pollution are inaccessible. Also Aghapour Sabbaghi and Naeimifar (2022), in the environment input-output framework, show that the sanction changes the trading strategies of the target country in such a way that policymakers are concentrated on import substitution policy to reduce economic pressures. This approach in Iran has led to pollution increase and environmental degradation.…”