His economic approaches to global warming include modelling to determine the efficient path for coping with climate change.
"In selecting doctors Romer and Nordhaus, the Royal Swedish Academy of Sciences has recognized economic research that is, in its essence, an optimistic view of the power of economic theory", President Andrew Hamilton said in a press conference at the Kaufman Management Center. "I hope the prize today could help everyone see that humans are capable of fantastic accomplishments". Last year's economics prize went to alumnus Richard Thaler '74 (PhD), the Charles R. Walgreen Distinguished Service Professor of Behavioral Science and Economics at the Booth School at the University of Chicago and one-time faculty member at what is now Rochester's Simon Business School. "Nordhaus has been concerned all along with repairing the damage" to the global environment. Carbon tax policies are created to lead companies to find new ways to reduce pollution.
USA economists William Nordhaus and Paul Romer yesterday shared the 2018 Nobel Economics Prize for constructing "green growth" models that show how innovation and climate policies can be integrated with economic growth. Romer, he said, has been writing about the methods available to deal with such a technological challenge.
On the day that the UN Intergovernmental Panel on Climate Change (IPCC) warned that we only have 12 years left in which to prevent climate catastrophe, an American climate economist cited heavily in the IPCC's report has been named one of the two winners of this year's Nobel Memorial Prize for Economic Sciences.
"At the most basic level, an economy grows. whenever people take resources and rearrange them in a way that makes them more valuable", Romer wrote in a 2015 blog post that he resurfaced, after he won the Nobel Monday. I've reference Romer multiple times in the past, specifically in discussing how innovation creates economic growth in powerful ways.
Romer explored why some countries have enjoyed faster economic growth over the long run than others. Its supporters encourage governments and the private sector to foster innovation and incentives for increased creativity.
Governments have the power to promote or discourage innovation through policy. According to Royal Swedish Academy of Sciences, who announced the awards, their efforts have broadened the scope. Instead of technological growth simply happening-as if falling upon the economy from the sky-his doctoral thesis assumed that economic agents, such as people or businesses, can actively affect the speed of economic growth.
The award that concludes this year's series of Nobel prizes came about seven decades after the others.
Last year, the prize went to United States economist Richard Thaler, a co-founder of the so-called nudge theory, which shows how people can be persuaded to make decisions that leave them healthier and happier.
The peace prize was awarded Friday to Denis Mukwege of Congo and Iraqi Nadia Murad for their work to draw attention to how sexual violence is used as a weapon of war.