Existing ecosystem service markets: How accessible are they, who’s using them, and are they improving environmental conditions?

Market-based environmental mitigation strategies will likely play an important role in reducing anthropogenic impacts to global ecosystems.   As a result of federal guidance that allows for natural resource values to be sold and traded on the open market, ecological features typically present on undeveloped land such as forests, wetlands, streams, and biodiversity now hold economic value.  Credits for endangered species, wetlands, water quality improvements and carbon sequestration can be used or sold in order to comply with mitigation requirements of environmental laws.   The value of the credits can be very high. An acre of wetland is selling for over $250,000 in California – substantially more than if the property was sold to a developer.  The financial value of natural resources is resulting in their recognition of ecological features as being assets.

Applying an ecological asset perspective to land management strategies can result in non-traditional property values that may generate substantial economic and public relations benefits.  Companies in the pulp & paper industry, departments of transportation, oil and gas production, and electric power generation are already realizing the business value of maintaining healthy natural resources on corporate property.   Further, in the late 1990’s an entirely new business sector emerged to realize these opportunities, the mitigation banking industry. 
The potential for market-based mitigation to assign a real, fungible, dollar value to intact natural resources is powerful, providing the basis for reconciling historic conflicts between business and conservation. Private property owners might no longer fear the discovery of rare animals on their land. In fact, some savvy entrepreneurs are seeking opportunities in such discoveries.  However, a number of crucial ecological elements remain unresolved.  It will take the resolution of these ecological uncertainties before the full potential of market-based approaches can be realized.