Journal of Environmental and Natural Resource Economics

Journal of Environmental and Natural Resource Economics

An Analysis of Iran's Post-War Environmental Economy

Document Type : Short Communication

Authors
Narges Sharifi 1
reza shamsollahi 2
1 Faculty of Management and Economics, Lorestan University, Khorramabad, Iran
2 Faculty of Social Sciences, Razi University, Kermanshah, Iran
10.22054/eenr.2026.93133.234
Abstract
Abstract
Introduction
Examining the state of Iran’s post-war environmental economy is of paramount importance, as the ramifications of armed conflict extend far beyond the destruction of physical infrastructure and direct human casualties, inflicting persistent, systemic, and costly damage on the nation’s natural capital. In Iran, particularly within borderlands and conflict-affected zones, war-induced degradation has manifested as acute land degradation, accelerated soil erosion, diminished edaphic fertility, contamination of soil and hydrological resources, habitat destruction, and the functional breakdown of ecosystems. Due to the cumulative latency and persistent nature of toxic residues and pollutants, many of these ecological disruptions endure decades after the cessation of hostilities. Consequently, evaluating environmental economics in the post-war era is an imperative to identify, quantify, and internalize the “hidden costs” of warfare, translating them into actionable metrics for strategic public policymaking.
The gravity of this issue is further amplified given that post-conflict reconstruction agendas typically prioritize short-term macroeconomic expansion, industrial recovery, and capital-intensive development projects under severe fiscal and resource constraints. Consequently, environmental liabilities are either entirely omitted from national economic calculations or relegated to secondary concerns. This omission occurs despite the empirical reality that environmental deterioration directly impairs the total factor productivity of vital sectors such as agriculture and fisheries, escalates public health expenditures, undermines food security, degrades social welfare, and threatens the long-term viability of local livelihoods. Therefore, a rigorous post-conflict environmental economic analysis is critical to demystifying how much of nominal economic growth is merely an artifact of natural capital liquidations and the intergenerational displacement of environmental liabilitiesa problem of profound significance for intergenerational equity and sustainable development.
Problem Statement
Environmental degradation directly impairs the structural productivity of sectors such as agriculture and fisheries, inflates national health expenditures, compromises food security, diminishes overall quality of life, and jeopardizes the sustainability of local employment. Analyzing the post-war environmental economy is therefore indispensable for discerning the extent to which apparent macroeconomic expansion stems from the depletion of natural capital endowments and the intertemporal shifting of environmental debt, concerns fundamental to intergenerational equity and sustainable development frameworks. Concurrently, Iran has confronted compounding, macro-scale environmental crises in the decades following the conflict, including severe water stress, prolonged meteorological and hydrological droughts, persistent dust storms, deteriorating ambient air quality, and intensifying anthropogenic pressure on natural resource bases.
These acute conditions underscore that post-war rehabilitation and regional development must transcend simple restorative efforts aimed merely at returning to pre-war baselines. Instead, policy must transition toward a paradigm of resilient reconstruction, a sustainable development model that simultaneously prioritizes the mitigation of ecological vulnerabilities, optimal and efficient natural resource governance, and the curtailment of socioeconomic risks. The discipline of environmental economics offers robust methodological toolsincluding ecosystem services valuation, extended social cost-benefit analyses incorporating environmental externalities, and targeted market-based incentive structures designed to decouple economic activity from resource depletion and emissions, rendering reconstruction strategies far more allocatively efficient and environmentally sustainable.
Ultimately, analyzing Iran’s post-war environmental economy is not merely a theoretical exercise, but an urgent strategic and geopolitical imperative directly linked to national food security, public health outcomes, demographic and livelihood stabilization in sensitive border regions, the mitigation of environmentally induced displacement and forced migration, and the enhancement of national macroeconomic resilience. Accordingly, a rigorous economic assessment provides the empirical foundation for formulating green reconstruction initiatives, optimizing the allocation of environmental investments, and reorienting national development trajectories so that economic growth is harmonized with the preservation of natural capital and the long-term collective welfare of society.
Analysis and Key Findings
The primary and most conspicuous direct consequence of conflict is the physical degradation of natural ecosystems. Kinetic bombardments, heavy munitions, tactical ordnance, and intensive mechanized military maneuvers have profoundly altered territorial landscapes; habitat destruction, catastrophic biodiversity loss, deteriorating ambient air quality, and the widespread chemical contamination of edaphic and hydrological resources represent the foundational and acute damages of war. Beyond direct damages, the socioeconomic costs of warfare on the environment, though routinely overlooked or understated in baseline assessments, manifest as staggering economic liabilities over the long term. Under these dynamics, the polluter-pays principle constitutes a pivotal legal and economic instrument for regulating post-conflict relations and restorative justice. These normative principles provide a rigorous justification for establishing liability and mobilizing financial resources for ecological remediation, whether funded via sovereign hydrocarbon revenues or mobilized through multilateral environmental assistance.
Policy Recommendations
The analytical synthesis indicates that Iran’s pronounced structural dependency on hydrocarbon revenues, combined with institutional inertia and lax regulatory governance, has generated a compounding confluence of environmental vulnerabilities. Any potential military conflict would profoundly aggravate these pre-existing economic and environmental vulnerabilities. However, critical crises can paradoxically serve as strategic windows of opportunity for institutional and economic renewal, provided that pre-conflict political and economic institutions undergo fundamental structural transformation. To avert chronic ecological and economic entrapment, Iran must enact comprehensive, long-term policies capable of liberating the economy from its structural dependence on fossil resource rents and rent-seeking institutional governance.
Keywords
Keywords: Environmental economics
natural resources
environmental governance
Iran
post-war
Subjects
 
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Journal of Environmental and Natural Resource Economics
Volume 5, Issue 14
Autumn 2025
Pages 15-32

  • Receive Date 29 May 2026
  • Revise Date 08 July 2026
  • Accept Date 09 July 2026