Final answer:
A malfunctioning agricultural system in environmental economics is one that inefficiently uses resources and is not sustainable, contributing to soil degradation, food insecurity, and an inability to adapt to climate change.
Step-by-step explanation:
In environmental economics, the definition of a malfunctioning agricultural system is D. An agricultural system that does not efficiently use resources or produce goods and services in a way that is sustainable. This inefficiency and lack of sustainability manifest through various forms such as soil degradation, misuse of water resources, reliance on monocropping, and inadequate response to climate extremes. These systems are often characterized by practices that are not only ecologically unsustainable but also contribute to food insecurity and are potentially unable to meet future human demands. For example, the United Nations' Food and Agricultural Organization (FAO) has warned about the risk of breakdown in productive capacity due to overuse and poor farming practices, with significant plots of agricultural land already highly degraded.
Moreover, agricultural systems that prioritize short-term gains over long-term sustainability can lead to tradeoffs where critical resources are depleted. Excessive focus on quantity rather than the quality and resilience of food production could result in systems that are not equipped to adapt to environmental changes, such as those induced by climate change. Sustainable agricultural practices, adapted to local conditions and focused on holistic and resilient solutions, are necessary for long-term food and water system security.