International sanctions and energy poverty in target developing countries

Access to electricity and clean, modern cooking technologies is still a concern in developing countries. However, the literature on the determinants of energy poverty seems to neglect the role of international sanctions. This study establishes, for the first time, the empirical relationship between international sanctions and energy poverty in target developing countries. We use data from a large panel of 97 countries regularly sanctioned over the period 1996-2019. Using the fixed effects method and logistic regression, we find that international sanctions increase energy poverty in the target countries. Specifically, the imposition of UN, EU, US, unilateral and plurilateral sanctions leads to a reduction in energy consumption, access to electricity, and clean and modern cooking technologies. For robustness, alternative sanctions measures (travel, financial, trade, military, arms, economic, non-economic, and intensity), additional control variables, as well as an alternative estimation strategy, were considered. In order to provide robust policy recommendations, we explain the mechanisms by which international sanctions affect energy poverty, including human capital, energy efficiency, income inequality, and economic growth.