Abstract
ABSTRACTWe examine the relationship between ethnic diversity and environmental quality, proxied by carbon dioxide () emissions. Ethnic diversity is captured using indices of ethnic fractionalization. Adopting a supply-demand framework which introduces a model for economic growth, we find that ethnic fractionalization reduces emissions. The negative effect of ethnic diversity on emissions is also consistent across middle and low-income countries as well as high-income countries. However, results suggest that ethnic diversity has a negative effect on growth in middle and low-income countries, but a positive effect on growth in high-income countries. Our findings prove robust to alternative estimation methods.
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