The neoliberalization of ecosystem services: wetland mitigation banking and problems in environmental governance

Wetland mitigation banking is an American neoliberal environmental policy that has created a functioning market in 'ecosystem services', commodities defined using the holistic measures of ecological science. The development of this market is discussed as a project of environmental governanee, defined as the nation-state's regulation of ecological relations within its territory towards stabilizing capitalist relations of power and accumulation. I argue that the wetland banking industry serves as a bellwether that presages problems that other strategies of neoliberal environmental governance will experience. Ethnographic, economic and ecological data from the Chicago-area wetland banking industry inform a discussion of two major obstacles to neoliberal strategy: the problem of relying on ecological science to define the unit of trade, and the problem of aligning the somewhat independent relations of law, politics, markets and ecosystems across an array of spatial scales. Theoretical guidance is sought from recent work on 'social natures' and from the Regulationist approach to institutional political economics. (C) 2003 Elsevier Ltd. All rights reserved.