ABSTRACT
The study of global ecosystems reveals that the emergence of endangered species in one location may be propelled by loss of habitats several thousand kilometres away. Numerous examples of this kind clearly indicate that changes in KN stocks are in fact powerful manifestations of globalisation and global connectivity. Efforts to curb carbon dioxide and other greenhouse gas emissions through the Kyoto Protocol, for example, have resulted in considerable redistribution of emissions profiles, all while seeing emissions rise. For example, research by Glen Peters of the Center for International Climate and Environmental Research in Oslo and his colleagues provides a consumption-based approach to carbon accounting. A surge in global demand and/or a fall in global supply would push world prices upwards, while a surge in global supply and/or a fall in global demand would have the reverse effect. The main outcome of internalising KN into the trade and exchange rate frameworks is that markets would contract.
