Public goods and ethnic diversity: evidence from deforestation in Indonesia

Alesina, Alberto, Gennaioli, Caterina and Lovo, Stefania (2019) Public goods and ethnic diversity: evidence from deforestation in Indonesia. Economica, 86 (341). pp. 32-66. ISSN 0013-0427

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Abstract

This paper shows that the level of deforestation in Indonesia is positively related to the degree of ethnic fractionalization. To identify a causal relation we exploit the exogenous timing of variation in the level of ethnic heterogeneity due to the creation of new jurisdictions. We provide evidence consistent with a lower control of politicians, through electoral punishment, in more ethnically fragmented districts. Our results are consistent with the literature on (under) provision of public goods in ethnically diverse societies.

Item Type:	Article
Official URL:	https://onlinelibrary.wiley.com/journal/14680335
Additional Information:	© 2018 The London School of Economics and Political Science
Divisions:	Grantham Research Institute
Subjects:	G Geography. Anthropology. Recreation > GE Environmental Sciences H Social Sciences > HT Communities. Classes. Races S Agriculture > SD Forestry
JEL classification:	D - Microeconomics > D7 - Analysis of Collective Decision-Making > D73 - Bureaucracy; Administrative Processes in Public Organizations; Corruption L - Industrial Organization > L7 - Industry Studies: Primary Products and Construction > L73 - Forest Products: Lumber and Paper O - Economic Development, Technological Change, and Growth > O1 - Economic Development > O10 - General
Date Deposited:	21 Sep 2018 14:23
Last Modified:	24 Sep 2025 06:15
URI:	http://eprints.lse.ac.uk/id/eprint/90257

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