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(You're severely underestimating the quantity of grinding some people are willing to do: someone could kill all the deers for pelts and meat, then cut all trees, and sell the grass and topsoil too for landscaping... only to start mining the barren land afterwards. By then I hope all that work has increased his STR because he'll have to fight the whole enraged town, but I digress. :P )While a story about a chain of dominos leading from killing some deer to the city getting wiped out makes for an interesting story, setting up dynamic systems that will actually chain effects like that is hard.
I am not saying that the components are a problem. You can simulate populations of animals, food scarcity, erosion, Royal decrees, etc. The problem is, in practice, I don't think their interactions will be quite so rich. Having a change in one system lead to a large enough change in another system to chain the change along seemsunlikely. Unless each system is designed to be unstable, so any change will send changes sweeping across the board, but that is likely to just give you a chaotic world.
Part of the appeal of such chain reactions would be seeing the effects propagate out, and being able to make such changes yourself to influence events. If the world is too chaotic, seeing the changes propogate will be swamped out by the background level of change, and intentional changes will get overwhelmed.
It is better to simply ain for a reactive world. Changes can propogate, systems interact, but it's not expected that changes will set of domino chains.changes are less likely to cause direct changes that ripple through and upset the world, but rather the world is naturally progressing, and changes you make along the way will shape how the advancement occurs.