Nordhaus, a professor of economics at Yale University, was the first person to create a quantitative model that described the interplay between the economy and the climate, the Swedish academy said.
This is why "societal questions are reflected in the prize", including the issue of climate change, which is 'very important right now, ' he said. He said he had been taken by surprise by the award, but offered a positive message. In fact, thanks to Warsh's book about Romer, and its section on Nordhaus - as well as a few other mentions - that made me go out and pick up a copy of The Economics of New Goods, which is a collection by the National Bureau of Economic Research (NBER) of some of the absolute best papers on economics and innovation.
Professor Romer, of New York University's Stern School of Business, has shown how economic forces govern the willingness of firms to produce new ideas and innovations.
Whether it's improving communication systems, developing new drugs, or coming up with potentially planet-saving environmental proposals, Romer argues that we can solve the world's most pressing problems with increasing speed using the principles of endogenous growth theory.
He later revealed how he got two phone calls before 1000 GMT (6 p.m.in Manila) but didn't answer, thinking they would be telemarketing. He initially missed the early morning call from Sweden telling him he won before calling back, when he was asked if would accept the prize.
"What's a little bit troubling, even though I remain very optimistic about technological possibilities, is that it seems as though we're starting to lose our commitment to the facts", he told a news conference in NY.
Besides pioneering the economic analysis of climate change, Nordhaus, a professor of economics at Yale University, has been a life-long advocate for carbon taxation to reduce emissions. Carbon dioxide, which is emitted when fossil fuels are burned, is a heat-trapping "greenhouse gas" blamed for global warming, and a tax would make polluters pay for the costs imposed on society.
Countries refusing to take part in the scheme could be subjected to customs tariffs.
Referring to the Trump administration's resistance, Nordhaus said: "I think we just need to get through what is a hard period".
Romer's work shows how knowledge can serve as a driver of long-term economic growth. Romer's theory prompted new research into policies that encourage ideas and progress, according to a Nobel press release. He was chief economist at the World Bank from 2016 to 2018, and is credited with the quote "A crisis is a awful thing to waste".
Alongside the winners William Nordhaus and Paul Romer, there have been forty nine Nobel prizes for economics and they have been awarded to a total of seventy five laureates. There have been 49 Economic Sciences prizes, awarded to 75 laureates.
Ousted Guardians of the Galaxy director switches camps, tied to new DC Comics film
The film was previously going to be written and directed by Gavin O'Connor , but he has since moved on to other projects. TheWrap dropped the bombshell on Tuesday, adding that Gunn will have a "completely new take on the property".