Public Goods and Ethnic Diversity: Evidence from Deforestation in Indonesia

Alberto Alesina, Caterina Gennaioli and Stefania Lovo

No 20504, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: This paper shows that the level of deforestation in Indonesia is positively related to the degree of ethnic fractionalization at the district level. To identify a casual relation we exploit the exogenous timing of variations 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 bring a new perspective on the political economy of deforestation. They are consistent with the literature on (under) provision of public goods and social capital in ethnically diverse societies and suggest that when the underlying communities are ethnically fractionalized decentralisation can reduce deforestation by delegating powers to more homogeneous communities.

JEL-codes: H0 O1 (search for similar items in EconPapers)
Date: 2014-09
New Economics Papers: this item is included in nep-gro, nep-res and nep-sea
Note: DEV POL
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Citations: View citations in EconPapers (21)

Published as Alberto Alesina & Caterina Gennaioli & Stefania Lovo, 2019. "Public Goods and Ethnic Diversity: Evidence from Deforestation in Indonesia," Economica, vol 86(341), pages 32-66.

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Related works:
Journal Article: Public Goods and Ethnic Diversity: Evidence from Deforestation in Indonesia (2019)
Working Paper: Public goods and ethnic diversity: evidence from deforestation in Indonesia (2019)
Working Paper: Public Goods and Ethnic Diversity: Evidence from Deforestation in Indonesia (2016)
Working Paper: Public goods and ethnic diversity: evidence from deforestation in Indonesia (2015)
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