The Nobel Prize of Economics 2018, officially named the Nobel Memorial Prize in Economic Sciences of the Bank of Sweden in memory of Alfred Nobel, has been awarded to the American economist and professor at Yale University, William Nordhaus, and also to the professor at the University of New York, Paul Romer for their studies on the impact of climate change on the economy and the Theory of Endogenous Growth.
William Nordhaus has been awarded the Nobel Prize of Economics 2018 for his work on the damage caused by climate change, integrating this area into macroeconomic analysis. For his part, Paul Romer has been granted this recognition for integrating technological innovations within macro analyzes. In this context, he has studied how economists can achieve a sustainable economic growth rate.
The models created by both economists are contributing to the development of economic growth and fighting climate change, by advocating for the creation of a more sustainable economy in the long term, the Royal Swedish Academy of Sciences highlighted at the press conference for the announcement of the winners names.
The Royal Swedish Academy of Sciences has explained that the contributions of Paul Romer and William Nordhaus are essentially methodological “and provide us with key knowledge of the causes and consequences of technological innovation and climate change.” In the opinion of the prestigious institution, the winners of this year have not reached “definitive” conclusions, but the results of their research “have brought us closer to the answer of how to achieve sustainable global growth“.
Paul Romer’s vision on reducing emissions
Paul Romer has been optimistic about climate change during the press conference for the announcement of the winners and has assured that “the world can solve the problem if the adoption of measures begins immediately.”
The Nobel Prize of Economics 2018 also noted that “when we start trying to reduce carbon emissions, we will be surprised that it was not as complicated as we thought” and warned that the most alarmist reports can create despair. “It is totally feasible,” Romer underlined referring to the reduction of emissions and the implementation of sustainable living and economic growth standards: “If we do the right thing, everything will go well, now is the time to act,” he stressed.
In Romer’s opinion, “one of the current problems is that people believe that climate protection will be so expensive and harsh that they prefer to ignore the problem and pretend it does not exist.” Humans are capable of amazing things, if we all work together “.