Examples of regulation-driven markets for ecosystem
services include wetland mitigation banking and water quality
trading (Gaddie and Regens. 2000; Brauman et al.. 2007)
authorized under the Clean Water Act (33 U.s.c. 1344). and species
conservation banking (USFWS. 1988; Carroll et al.. 2007) implemented
under the Endangered Species Act (33 U.S.c. 1344). Cap-andtrade
programs are also being successfully applied in several important
U.s. programs to reduce pollution, including the effort to control
acid rain by limiting S02 emissions (Stavins. 1998, 2005). For example.
fossil fuel electric power plants are issued permits by the u.S. Environmental
Protection Agency for a certain amount of S02 emissions.
However