Data response question (2)
Read the article Losing Thousands of Hectares of Forests Each Year and then answer the questions below.
The effect of clearing of forests to increase the amount of arable crops that can be grown is an example of a negative externality.
Explain what is meant by a negative externality
Using supply and demand diagrams, explain how negative externalities result in market failure.
Examine why an increase in the level of poverty within Burkino Faso contributes to environmental degradation.
Discuss strategies that the government of Burkina Faso could introduce to reduce the extent of forest degradation.