The effect of economic sanctions on Iran's environment with the General Equilibrium CGE approach

Document Type : Research Paper

Authors

1 Master student of Energy Economics Department, Faculty of Economics and Management, Tarbiat Modares University, Tehran, Iran

2 Associate Professor, Department of Economics, Faculty of Economics and Management, Tarbiat Modares University, Tehran, Iran

3 Associate Professor, Department of Economic Development and Planning, Faculty of Economics and Management, Tarbiat Modares University, Tehran, Iran

Abstract
Iran has been facing economic sanctions for more than four decades. In general, sanctions affect the environment and sustainable development in several ways. Restrictions on financial flows, transfer of technology, pressure on government budgets, pressure on the environment, and many other issues are among the issues that have put pressure on the environment and prevented the process of sustainable development in Iran. The present study has used the "calculable general equilibrium" method to simulate the effect of sanctions on Iran's economy and is purposefully applied and developmental and descriptive-analytical in nature.

The research model is designed based on the Lafgren standard model according to the characteristics of Iran's economy and in accordance with the purpose of the research, and eight scenarios are applied to the research model. According to the results of the, if the government's goal is to "reduce the budget deficit while reducing the pressure on the environment", the best option is to increase the tax rate. If the government's goal is to "reduce pollution while increasing economic growth and development" but does not take into account the budget deficit, increasing research and development incentives is recommended. If the government's goal is to "grow and develop in the long run and increase the competitiveness of the business community in order to be more resilient to sanctions," the scenario is to increase research and development efficiency throughout the economy. Therefore, the results indicate that the strengthening of research and development in various economic sectors will be significantly important

Keywords

Subjects


Articles in Press, Accepted Manuscript
Available Online from 01 July 2025

  • Receive Date 27 April 2024
  • Revise Date 16 June 2025
  • Accept Date 01 July 2025
  • First Publish Date 01 July 2025
  • Publish Date 01 July 2025