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Under which market condition might we see the destruction of the Amazon rainforest?

a. The demand for lumber is low.
b. The ownership rights to the forests are unclear.
c. The supply of lumber is abundant.
d. The forest is owned by a logging company.

User Edt
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Final answer:

The Amazon rainforest is primarily threatened by unclear ownership rights, high demand for lumber, and incentives for logging, cattle ranching, and industrial farming, leading to rapid and unsustainable deforestation. Hence, option b. is the correct answer.

Step-by-step explanation:

The destruction of the Amazon rainforest might be seen under market conditions where the ownership rights to the forests are unclear, and where there is a high demand for lumber and agricultural land. Unclear ownership can lead to unregulated deforestation as individuals or entities exploit the land for immediate gain. This is often exacerbated by incentives for large-scale cattle ranching and industrial farming, which the government and international consumers further incentivize. Large expanses of the Amazon are currently being cleared for these purposes.

Moreover, the high demand for meat and soy products, often for export, contributes to the rapid rate of deforestation. The allure of expected land price increases as the region develops also encourages this destructive cycle. Consequently, unclear property rights, along with high global commodity demand, particularly for cattle ranching and soy farming, create conditions ripe for deforestation in the Amazon Basin.

User Nick Walsh
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