Paul Romer, a former first Vice President of the International Bank for Reconstruction and Development(World Bank) and William Nordhaus, a Professor of Economics at Yale University have won the 2018 Nobel Prize for Economics.
Nordhaus was selected for his works on integrating climate change into the long-run macroeconomic analysis while Romer’s innovative work on what is now known as the ‘endogenous growth theory’ made him a choice for the highly revered prize.
Nordhaus, 77, is an alumnus of Yale University and Massachusetts Institute of Technology.
Romer was a Senior Economist at the World Bank before he quit on the 24th of January 2018 over a scandal.
Economics Nobel prize given for work on climate change and innovation
Americans William Nordhaus and Paul Romer win prestigious award
2 hours ago
The Nobel Prize in economics has been awarded to William Nordhaus and Paul Romer for their work on climate change and innovation.
Nordhaus was the first person to create a quantitative model describing the interplay between the economy and climate — which is now used to examine the consequences of policy interventions such as carbon taxes.
The prize committee said their principal achievements had been to develop the economic tools needed to address the fundamental question of how to ensure sustainable long-run economic growth — with a huge impact on policymaking.
Prof Romer told a press conference that he hoped the prize would help spread the message that “people are capable of amazing things when we set about doing something.
“If we make the policy changes required, we can make substantial progress towards protecting the environment — and we can do it without giving up the chance to sustain growth.”
The Nobel Memorial Prize in Economics was first awarded in 1969 to reward great works in economics.