Final answer:
Subsidies for activities like mining, grazing, and logging on public lands can cause excessive environmental damage due to increased production levels. These activities can lead to deforestation, habitat destruction, and soil erosion.
Step-by-step explanation:
According to the Economist article, subsidies for activities such as mining, grazing, and logging on public lands can lead to excessive environmental damage. One reason for this is that production subsidies tend to decrease marginal costs, which in turn increases production levels.
This increase in production can cause various forms of environmental harm. For example, mining often involves removing large portions of earth, leading to deforestation and habitat destruction. Similarly, overgrazing and logging can result in soil erosion and the loss of ecosystems.
These harmful effects on the environment can occur because subsidized activities become more financially viable and thus more prevalent. Without proper regulations and environmental protections, the increased production levels facilitated by subsidies can have detrimental consequences for the land and its ecosystems.