Home > Economy > Economists who changed thinking on climate change win Nobel Prize | Nature

Economists who changed thinking on climate change win Nobel Prize | Nature

A pair of US economists, William Nordhaus and Paul Romer, share the 2018 Nobel Prize in Economic Sciences for integrating climate change, and technological change, into macroeconomics, which deals with the behaviour of an economy as a whole.

Nordhaus, at Yale University in New Haven, Connecticut, is the founding father of the study of climate change economics. Economic models he has developed since the 1990s are now widely used to weigh the costs and benefits of curbing greenhouse gas emissions against those of inaction. His studies are central to determining the social cost of carbon, an attempt to quantify the total cost to society of greenhouse-gases, including hidden factors such as extreme weather and lower crop yields. The metric is increasingly used when implementing climate change policies….

Romer, who is at the NYU Stern School of Business in New York, was honoured for his work on the role of technological change in economic growth. The economist is best-known for his studies on how market forces and economic decisions facilitate technological change. His ‘endogenous growth theory’, developed in the 1990s, opened new avenues of research on how policies and regulations can prompt new ideas and economic innovation.

Read the whole story here: Economists who changed thinking on climate change win Nobel Prize

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