Climate change economists win Nobel prize

Climate change economists win Nobel prize

Climate change economists win Nobel prize

Nordhaus, a professor at Yale University, and Romer of 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 academy said. "They want to deny it exists; they can't deal with it".

"Nordhaus has been concerned all along with repairing the damage" to the global environment", Warsh said.

The committee said: "Romer demonstrates how knowledge can function as a driver of long-term economic growth".

Paul Romer, a former assistant professor of economics at the University of Rochester and now a professor at New York University, has been named a recipient of this year's Nobel Prize in Economic Sciences.

"They have taken macroeconomics to a global scale, to tackle some of the world's biggest problems", said the Nobel Prize committee.

An example of this would be how a tax on carbon output would affect both the economy and the climate of any given nation.

"His tools allow us to simulate how the economy and climate would co-evolve in the future under alternative assumptions about the workings of nature and the market economy, including relevant policies".

Romer told the Swedish academy in a live phone interview at the prize announcement that he was confident the world could reduce greenhouse gas emissions and still improve standards of living in the future.

Romer explored why some countries have enjoyed faster economic growth over the long run than others. This explains how ideas are different from other physical goods and require certain conditions to thrive in a market.

By contrast, an idea - say, a recipe for Swedish meatballs - can be shared and used over and over again, delivering continual economic benefits.

Whether economics is a genuine science in the sense of the Nobels awarded for accomplishments in medicine, chemistry and physics can be debated; the award often goes to work that has a high level of abstraction.

Past year it was awarded to the behavioural economist Richard Thaler, who won for his work on nudge theory, the idea that small "nudges" can influence our economic and social behaviour, and his work around humans being irrational economic actors.

The peace prize was awarded Friday to Denis Mukwege of Congo and Iraqi Nadia Murad for their work in drawing attention to how sexual violence is used as a weapon of war.

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