ORIGINAL RESEARCH
The Impact of Economic Sanctions
on the Environment of Target
States: A Panel Data Analysis
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1
School of Civil Engineering, Changsha University of Science & Technology, Changsha, China
2
Hunan Academy of Education Sciences, Changsha, China
3
School of Business, Xiangtan University, Xiangtan, China
Submission date: 2024-08-22
Final revision date: 2024-10-29
Acceptance date: 2024-11-10
Online publication date: 2025-01-07
Corresponding author
Zhike Lv
School of Business, Xiangtan University, Xiangtan, China
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ABSTRACT
In this paper, we explore whether economic sanctions may be inimical to the environmental quality
in target states. To obtain robust and unbiased results, this paper applies the Pooled Mean Group method
that counters the issue of heterogeneity and cross-sectional dependence. The results reveal that economic
sanctions have a significant deleterious impact on the target state’s environmental quality in the long
run. Still, in the short run, its influence is statistically insignificant. Further analyses provide evidence
in support of the hypothesis that multilateral sanctions impose a more severe effect on environmental
quality than unilateral sanctions. Moreover, the bad consequences of economic sanctions on emissions
initially increase over time, but after the turning point (approximately 9 years), the influence of
economic sanctions gradually diminishes. Finally, the results also show that the environmental impact
of economic sanctions is greater in low and lower-middle-income countries.