The diversity we breath: Community diversity and gas leak management

Abstract

Diversity might reduce the ability of small-scale communities to protect local resources through its adverse impact on collective action and individual attachment. Using geocoded data on more than 1500 Grade-3 gas leaks in 2016 across Boston and Cambridge, MA, we show that when a leak emerges in a narrowly-defined area with higher ethno-racial fractionalization it enjoys lower chances of end-year reparation. After accounting for socio-economic and infrastructural factors, our preferred estimate suggests that moving from the 10th to the 90th percentile of the fractionalization distribution is associated to a 5.7 percentage point decrease in the probability of reparation, compared with an already low average of 3.7%. This result is robust to different definitions of the community surrounding a leak and to the inclusion of competing measures of diversity. Consistent with our framework, social capital appears to be especially lower in communities fragmented across ethno-racial lines. In turn, lower social capital is negatively associated to leak reparation.