2018 Nobel Prize for climate change and innovation

Nobel Prize for climate change studies

Climate change Two U.S. economists, William Nordhaus and Paul Romer, have received the 2018 Nobel Memorial Prize in Economic Sciences for their efforts to untangle the economics of climate change and technological innovations.

They significantly broadened the scope of economic analysis by constructing models that explain how the market economy interacts with nature and knowledge.

Nordhaus, of Yale University, developed two computer simulations that weigh the costs and benefits of taking various steps to slow global warming. He has argued for taxes on the carboncontent of fuels as an effective way to get businesses to reduce greenhouse gas emissions.

Romer, of New York University, expanded economic theory by arguing that government policies, such as funding for research and development, can stimulate technological advances.The presence or absence of such policies helps to explain national differences in wealth and economic growth, in Romer’s view.

Romer’s ideas about policy making and technological innovation, first published in 1990, inspired a school of research that examines how business regulations and policies lead to new ideas and economic growth. (Science News)