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The Creation of Markets for Ecosystem Services in the United States

The Creation of Markets for Ecosystem Services in the United States

Mattijs van Maasakkers

(2016)

Abstract

The Creation of Markets for Ecosystem Services in the United States is a detailed analysis of the most advanced efforts to create markets for ecosystem services in the United States. With the help of in-depth case studies of three well-known attempts to create such markets––in the Chesapeake Bay watershed, the Ohio River basin and the Willamette River basin––the book explains why very few of these markets have actually succeeded even after close to two decades of much scholarly enthusiasm, significant federal funding and concerted efforts by NGOs, government agencies and private businesses.

Based on interviews, policy analysis and participatory observation, three features of markets for ecosystem services emerge as particularly problematic. First, the logic of displacement or the idea that particular elements of an ecosystem can be separated and traded across landscapes or watersheds runs counter to political interests, environmental beliefs and people's connections to specific places. The second problem is that of measurement. Quantification methods embed a range of often contentious assumptions and decisions about what counts when restoring ecosystems. The third problem is related to participation in environmental decision-making.


“This is a thoughtful and engaging history of the often misguided attempts to create markets for ecosystem services in the US and a guide to more participatory institutions that might work significantly better. Essential reading for anyone interested in ecosystem services.” Robert Costanza, Chair in Public Policy, Crawford School of Public Policy, The Australian National University


Mattijs van Maasakkers is an assistant professor of city and regional planning at Ohio State University. Trained at the Massachusetts Institute of Technology, van Maasakkers’s research and teaching focus on the role of science and technology in environmental policy-making and implementation.


"Mattijs van Maasakkers’ The Creation of Markets for Ecosystem Services in the United States: The Challenge of Trading Places pulls readers into the complex relationship between environment and economy. In this multi-sited ethnography, Van Maasakkers hones in on three large-scale US conservation and restoration projects, exposing gaps in market-based approaches and the ultimate failure of the financialization of nature." —Anna Krol & Lisa Jean Moore, "Nature’s Worth: Using Human Markets to Value Ecosystems’ Contributions", Metropolitics, 20 February 2018.


The Creation of Markets for Ecosystem Services in the United States is a detailed, critical analysis of the most advanced efforts to create ecosystem services markets in the United States. With the help of in-depth case studies of three well-known attempts to create such markets––in the Chesapeake Bay watershed, the Ohio River basin and the Willamette River basin––the book explains why very few of these markets have actually succeeded even after close to two decades of much scholarly enthusiasm, significant federal funding and concerted efforts by NGOs, government agencies and private businesses.

Based on interviews, policy analysis and participatory observation, three features of markets for ecosystem services emerge as particularly problematic. First, the logic of displacement or the idea that particular elements of an ecosystem can be separated, quantified and traded across landscapes or watersheds runs counter to political interests, environmental beliefs and people’s connections to specific places. The second problem is that of measurement. By highlighting the long and often contentious histories of specific measurement systems used in ecosystem services markets, van Maasakkers shows that these quantification methods embed a range of assumptions and decisions about what counts when conserving or restoring (parts of) ecosystems. The third problem is related to participation in environmental decision-making. Since the requirements to buy offsets stem from federal and sometimes state regulations (based on the Clean Water Act or the Endangered Species Act), the opportunities and requirements for public participation are much more in line with typical policy implementation processes as opposed to voluntary decisions about buying and selling in an ideal typical market. How meaningful participation in this hybrid form of regulatory market is possible is not clear and not something that the proponents of markets have successfully dealt with, if at all.

 

Table of Contents

Section Title Page Action Price
Cover Cover 1
Front Matter i
Half-title i
Series information ii
Title page iii
Copyright information iv
Dedication v
Table of contents vii
List of illustrations ix
Acknowledgments xi
Chapters (1-5) 1
Chapter 1 Introducing Ecosystems to the Marketplace 1
1.a The Promise(s) of Markets for Ecosystem Services 2
The basic elements 2
Environmental markets and payments for ecosystem services 5
Early success and emerging challenges 9
1.b Why Are Markets for Ecosystem Services so Difficult to Create? 13
Failure to launch 14
Economics and policy 16
1.c How to Study Markets for Ecosystem Services 19
Practical methods 20
People and markets 22
The Ohio River, the Chesapeake Bay and the Willamette River 27
1.d Chapter Overview 30
Chapter 2 Creating Places for Markets 31
2.a Places versus Markets 32
A sense of place 33
The market in environmental policy 36
Efficiency, innovation and private participation 40
2.b Ecological Outsourcing in Oregon 41
From the Tualatin to a marketplace 43
Localized resistance 46
2.c Moving Matter out of Place in Pennsylvania 49
The first market in the Chesapeake Bay watershed 51
Poultry manure and the boundaries of trading 55
2.d Markets as Displacements 58
Chapter 3 Producing Equivalence 61
3.a How to Measure Ecosystem Services for Markets 63
The role of equivalence 64
Science, markets and the law 66
3.b Pipes versus Fields in the Ohio River Basin 68
A business case 69
Challenging currencies 72
The Steam Electric Category and the limits of equivalence 74
3.c No Two Wetlands Are the Same 78
Searching for equivalence in wetland mitigation banking 79
Quantification and simplification: The ORWAP spreadsheet 81
A fluttering market 85
3.d Markets and Nonequivalence 89
Chapter 4 Developing Participation 91
4.a Selection, Interaction and Authority 93
Who is invited? 94
How do participants interact? 95
What kind(s) of authority do participants have? 97
4.b Nutrient Net and an Effort to Create Trading at the Bay Scale 98
Participation and communication to what end? 99
Questionable authority in the Chesapeake Bay 102
4.c EPRI and the Role of Soil and Water Conservation Districts 104
Dealing with resistance 105
Committing state regulators 108
4.d Seeking Consensus in Oregon 111
Counting on support 112
Communicating across boundaries 115
4.e Markets without Participants 117
Chapter 5 Trading Places 119
5.a From Displacement to Spatializing Interests 120
5.b From Nonequivalence to Improving Places 122
5.c From Opposition to Building Consensus 124
5.d Conclusion 127
End Matter 129
List of Interviews 129
Bibliography 133
Index 147