Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/283534 
Year of Publication: 
2024
Series/Report no.: 
MAGKS Joint Discussion Paper Series in Economics No. 03-2024
Publisher: 
Philipps-University Marburg, School of Business and Economics, Marburg
Abstract: 
Improving energy efficiency is vital for curtailing energy consumption and can have substantial impacts on alleviating carbon emissions. This study investigates the impact of sanctions on Iran's energy efficiency across different industrial sub-sectors from 2015 to 2019. We compute a sanctions index for each industrial sub-sector by using Principal Component Analysis (PCA). This index measures how much each sub-sector has been affected by sanctions. Additionally, energy efficiency is measured using the Directional Distance Function (DDF) method, considering the environmental impacts as undesirable outputs. We examine the effect of the degree of the sanctions indicator on energy efficiency using feasible generalized least squares (FGLS) estimation, controlling for other drivers of efficiency. Our results show a one standard deviation increase in sanctions index results in a decline of about 3% in sub-industrial energy efficiency.
Subjects: 
Energy Efficiency
Directional Distance Function
Sanctions
Sectoral effects
FGLS
Iran
JEL: 
Q410
C190
D240
F51
L90
Document Type: 
Working Paper

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