IDEAS home Printed from
   My bibliography  Save this article

An Analysis of OPEC Stability: Sacrifice Ratio Approach and Effect of Iran Economic Sanctions


  • Moeeni, Shahram

    () (Assistant Professor of Economics, University of Isfahan)

  • Sharifi, Alimorad

    () (Associate professor of Economics, University of Isfahan)

  • Forouharmanesh, Hadi

    () (MA in Energy Economics, Shahid Ashrafi Esfahani University)


The main purpose of this study is to analyze the stability of OPEC, based on approach of Danielsen's sacrifice ratio and the impact of Iran economic sanctions. For this purpose two concepts called the reserves sacrifice ratio and the capacity sacrifice ratio on Danielsen model framework have been used for investigating the stability of OPEC. Relationship between sacrifice ratios and variables such as population, gross domestic product (GDP), production and oil production capacities of all members of OPEC have been reviewed and analyzed. Iran sanctions as an important factor influencing on amount of sacrifice ratios and totally OPEC stability have been studied. Period of study has been chosen from 2000 to 2014. The results of this study show that during the examined period, there is a meaningful and negative correlation between population and sacrifice ratios. There is a meaningful and positive correlation between oil reserves and sacrifice ratio too. OPEC countries with large oil reserves have a tendency to restrict extraction of crude oil reserves. There is a meaningful and positive correlation between Iran economic sanctions and sacrifice ratio. Iran's oil production capacity has been reduced due to sanctions against Iran and consequently sacrifice ratios of reserves and oil capacities have been increased. According to results of this research there is no evidence to suggest OPEC collapse. As a result of this study, OPEC still considered a stable organization.

Suggested Citation

  • Moeeni, Shahram & Sharifi, Alimorad & Forouharmanesh, Hadi, 2016. "An Analysis of OPEC Stability: Sacrifice Ratio Approach and Effect of Iran Economic Sanctions," Quarterly Journal of Applied Theories of Economics, Faculty of Economics, Management and Business, University of Tabriz, vol. 3(3), pages 1-24, November.
  • Handle: RePEc:ris:qjatoe:0048

    Download full text from publisher

    File URL:
    File Function: Full text
    Download Restriction: no

    More about this item


    Stability; Sacrifice ratio; Collusion; Economic sanction; OPEC.;

    JEL classification:

    • F53 - International Economics - - International Relations, National Security, and International Political Economy - - - International Agreements and Observance; International Organizations
    • Q35 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Hydrocarbon Resources
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ris:qjatoe:0048. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sakineh Sojoodi). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.