Markets represent a subset of the many institutional arrangements that have developed over time for transferring rights. The fundamental characteristic of this subset is that it specializes in the exchange of property rights through mechanisms that require the mutual consent of parties involved (markets don't give orders) and that coordinate the decentralized decisions made by agents using the information provided through the price system.

Ecosystem services are the benefits people derive from nature. This variable is in regards to regulating and cultural services, which are defined below:

Regulating services are defined by the Millennium Assessment (2005) as "the benefits obtained from the regulation of ecosystem processes, including (1) Air quality maintenance. Ecosystems both contribute chemicals to and extract chemicals from the atmosphere, influencing many aspects of air quality. Climate regulation. Ecosystems influence climate both locally and globally. For example, at a local scale, changes in land cover can affect both temperature and precipitation. At the global scale, ecosystems play an important role in climate by either sequestering or emitting greenhouse gases. (2) Water regulation. The timing and magnitude of runoff, flooding, and aquifer recharge can be strongly influenced by changes in land cover, including, in particular, alterations that change the water storage potential of the system, such as the conversion of wetlands or the replacement of forests with croplands or croplands with urban areas. (3) Erosion control. Vegetative cover plays an important role in soil retention and the prevention of landslides. (4) Water purification and waste treatment. Ecosystems can be a source of impurities in fresh water but also can help to filter out and decompose organic wastes introduced into inland waters and coastal and marine ecosystems. (5) Regulation of human diseases. Changes in ecosystems can directly change the abundance of human pathogens, such as cholera, and can alter the abundance of disease vectors, such as mosquitoes. (6) Biological control. Ecosystem changes affect the prevalence of crop and livestock pests and diseases. Pollination. Ecosystem changes affect the distribution, abundance, and effectiveness of pollinators. (7) Storm protection. The presence of coastal ecosystems such as mangroves and coral reefs can dramatically reduce the damage caused by hurricanes or large waves."

Cultural services are defined by the Millennium Assessment (2005) as "the nonmaterial benefits people obtain from ecosystems through spiritual enrichment, cognitive development, reflection, recreation, and aesthetic experiences, including: (1) Cultural diversity. The diversity of ecosystems is one factor influencing the diversity of cultures. (2) Spiritual and religious values. Many religions attach spiritual and religious values to ecosystems or their components. (30 Knowledge systems (traditional and formal). Ecosystems influence the types of knowledge systems developed by different cultures. Educational values. Ecosystems and their components and processes provide the basis for both formal and informal education in many societies. (4) Inspiration. Ecosystems provide a rich source of inspiration for art, folklore, national symbols, architecture, and advertising. (5) Aesthetic values. Many people find beauty or aesthetic value in various aspects of ecosystems, as reflected in the support for parks, scenic drives, and the selection of housing locations. (6) Social relations. Ecosystems influence the types of social relations that are established in particular cultures. Fishing societies, for example, differ in many respects in their social relations from nomadic herding or agricultural societies. (7) Sense of place. Many people value the sense of place that is associated with recognized features of their environment, including aspects of the ecosystem.  (8) Cultural heritage values. Many societies place high value on the maintenance of either historically important landscapes (cultural landscapes) or culturally significant species. (9) Recreation and ecotourism. People often choose where to spend their leisure time based in part on the characteristics of the natural or cultivated landscapes in a particular area."