Costs for as many as seven SO2 control technologies were determined for each of the 66 existing or planned coal-fired utility units in the state of Illinois, and projected operations for each unit from 1983 through the year 2000 were obtained from production cost modeling runs or other data. The Sulfur Dioxide Emission Reduction Optimization Program (SEROP), a utility-specific marginal cost pollution control model developed at Wisconsin Power and Light Co., was used to calculate annual marginal control cost data for each individual utility, and statewide aggregate data. The potential market in emission reduction credits (ERC) was then analyzed for three acid deposition control strategies. It was determined that emissions trading sufficient to meet targeted emission levels for acid deposition control in an economically efficient manner will not occur under any of the strategies unless the desire for utilities to maintain control of their ERCs in future years is taken into account. This can only be accomplished in one of two ways: 1) leasing of ERCs, or 2) a “contingent” sale where the buyer agrees to sell back the ERC after a specified period of time. Other factors affecting the feasibility of ERC leasing are discussed.