US duo William Nordhaus and Paul Romer win Nobel Economics Prize
US economists William Nordhaus and Paul Romer on Monday shared the 2018 Nobel Economics Prize for integrating innovation and climate with economic growth, the jury said.
STOCKHOLM - US economists William Nordhaus and Paul Romer on Monday shared the 2018 Nobel Economics Prize for integrating innovation and climate with economic growth, the jury said.
Nordhaus, a professor at Yale University, and Romer, a former World Bank chief economist now at New York University's Stern School of Business, have addressed "some of our time's most basic and pressing questions about how we create long-term sustained and sustainable growth," the Royal Swedish Academy of Sciences said in a statement.
It said the pair have "significantly broadened the scope of economic analysis by constructing models that explain how the market economy interacts with nature and knowledge."
Nordhaus, 77, was specifically honoured for "integrating climate change into long-run macroeconomic analysis."
The 62-year-old Romer meanwhile won for "integrating technological innovations into long-run macroeconomic analysis."
Both have been tipped as frontrunners for the Nobel in recent years.
The pair will share the nine million Swedish kronor (about $1.01 million or 860,000-euro) prize.
Human activity has contributed to the rapid increases in average global temperatures over the last 100 years. 2018 Economic Sciences laureate William Nordhaus’ research shows how economic activity interacts with basic chemistry and physics to produce climate change. #NobelPrize pic.twitter.com/bJoLC9QKSx— The Nobel Prize (@NobelPrize) October 8, 2018
Nordhaus was the first person to create a quantitative model that describes the global interplay between the economy and the climate. His model is now widespread and is used to examine the consequences of climate policy interventions, for example carbon taxes. #NobelPrize— The Nobel Prize (@NobelPrize) October 8, 2018
This year’s Economic Sciences laureate Paul Romer’s research shows how the accumulation of ideas sustains long-term economic growth. He demonstrated how economic forces govern the willingness of firms to produce new ideas and innovations. #NobelPrize pic.twitter.com/LeWDpiIHrF— The Nobel Prize (@NobelPrize) October 8, 2018
Romer’s research laid the foundation of what is now called endogenous growth theory. The theory has generated vast amounts of new research into the regulations and policies that encourage new ideas and long-term prosperity. #NobelPrize— The Nobel Prize (@NobelPrize) October 8, 2018
Laureate William Nordhaus’ research shows that the most efficient remedy for problems caused by greenhouse gas emissions is a global scheme of carbon taxes uniformly imposed on all countries. The diagram shows CO2 emissions for four climate policies according to his simulations. pic.twitter.com/tmxUE6MiLn— The Nobel Prize (@NobelPrize) October 8, 2018
Last year, the honour went to US economist Richard Thaler, a co-founder of the so-called "nudge" theory, which demonstrates how people can be persuaded to make decisions that leave them healthier and happier.
Unlike the other Nobel prizes which were created in Swedish inventor and philanthropist Alfred Nobel's last will and testament and first awarded in 1901, the economics prize was created by the Swedish central bank, the Riksbank, in 1968 to mark its tricentenary. It was first awarded in 1969.
The Nobel, which also consists of a diploma and a gold medal, will be presented at a formal ceremony in Stockholm on December 10.
The Nobel economics prize wraps up the 2018 awards season, notable this year for the lack of a literature prize, postponed by a year for the first time in 70 years over a rape scandal that came to light as part of the #MeToo movement.
Last week, after the prizes for medicine, physics and chemistry were announced, the most highly-anticipated Nobel, that for peace, went to Yazidi women's campaigner Nadia Murad and Congolese doctor Denis Mukwege for their work in fighting sexual violence in conflicts around the world.