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Do Resource Sanctions Work?

Kai A. Konrad, Marcel Thum
CESifo, Munich, 2023

EconPol Forum 24 (3), 23-26
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  • Damage created by an export embargo on exhaustible resources is typically much smaller than the foregone revenues
  • Sanctions prompt the sanctioned country to extract resources later
  • With competitive resource markets, sanctions create no costs—to any of the countries
  • With non-price takers, the sanctioned country and worldwide consumers suffer losses
  • With insecure property rights, sanctions hurt the autocrat most if his or her job security is low, but his international financial assets are safe

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