Studying the Effect of Economic Sanctions on Iran's Environmental Indexes (SVAR Approach)

Abstract

In this paper the effects of economic sanctions were studied on environmental performance indexes. For this purpose required data was gathered from Central Bank of Iran (CBI) and World Economic Forum (WEF) during the years 2001-2017. Also, in order to data analyzing, Structural Vector Auto-Regressive (SVAR) model and Impulse Response Functions (IRF) were applied. Results indicated that economic sanction indexes reduce the whole considered Iran's environmental performance indexes. In addition, between considered economic sanction criteria, exchange rate shock (LEXR), importing raw materials, capital and intermediate goods shock (LIM), Non-oil export shock (LNX) and Oil export revenues shock (LOIL) have the most negative effect on Iran's environmental performance indexes, respectively. On the other hand, between studied environmental performance indexes, environmental health index (EHI), Environmental Performance Index (EPI) and ecosystem vitality index (EVI) have the highest vulnerability from considered economic sanction criteria.

Keywords

• environmental performance
• economic sanctions
• svar
• irf