Financialization and the Environmental Frontier
The most common understanding of financialization is where finance becomes increasingly dominant in the economy in relation to production, generating more value over time. Nature has been the source of financialized income for a much longer time than merely in the era of the “new financialization” and its associated neoliberal environmental governance from the 1980s. Alongside the growth of traditional secondary markets, new financialized assets from the environmental frontier began to be made from the 1980s. To illustrate the complexity of this frontier of financialization, it is useful to discuss further the processes of commodification and financialization theoretically, given that the former is a precursor of the latter. Whether animate or pacified, individual or massified, the commodification processes are a precursor of financialization, in that they create a pacified commodity which is free to be sold, traded and circulated in a market.