Problem
Some peasants are quite "risk-averse," for reasons discussed in this chapter. Imagine a group of poor pastoralists struggling with the effects of a famine and drought.
a Why might it be "rational" for them to actively, if unintentionally, contribute to the acceleration of environmental degradation, and to their own famine, via overuse of grazing land, if they are concerned with guarding against the exhaustion of their animal herds? Is this situation an example of a market failure?
b What could be done to prevent overgrazing of land?
c Are these people poor because they overgraze the land with the animals, or are they overgrazing the land because they are poor?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.