The Cost of Israeli Settlement on the Palestinian People

Volume 14|Issue 54-55| Winter 2026 |Special Issue

Abstract

This article reviews the existing literature on the economic costs of the Israeli occupation for the Palestinian people from 1948–2022, in order to build a methodology that can estimate the total cost. The study proposes three methodologies of estimation: aggregation, counterfactual, and occupation gains, whereby the methodology selection is contingent on the economic variables under estimation. Updating the cost estimates from previous studies reveals that Israel has gained between $955bn and $1.707tn from its settlements and occupation of the West Bank and East Jerusalem from 2000–2022. Estimating the losses incurred during the 1948 Nakba in 2022, the paper shows an increase from $3bn to $719bn in material losses.

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Mahmoud Elkhafif (Corresponding Author)ORCID

Former Senior Economist at the United Nations, and Former Coordinator of UNCTAD’s Assistance to the Palestinian People.

Director General of the Palestine Economic Policy Research Institute – MAS.

Professor of Economics at Birzeit University, Palestine.

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