In the present paper we study the Faddeev-Popov path-integral quantization of electrodynamics in an inhomogeneous dielectric medium. We quantize all polarizations of the photons and introduce the corresponding ghost fields. Using the heat kernel technique, we express the heat kernel coefficients in terms of the dielectricity and calculate the ultraviolet divergent terms in the effective action. No cancellation between ghosts and `non-physical' degrees of freedom of the photon is observed.
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