Nordhaus, romer win nobel for thinking on climate, innovation washington university seattle

(bloomberg) — william D. Nordhaus of yale university and paul M. American unis romer of new york university’s stern school of business won the 2018 nobel prize in economics for bringing long-term thinking on climate issues and technological innovation into the field of economics.

Nordhaus, 77, began working on environmental issues in the early 1970s as part of an effort to put an economic costs on global warming. American college of obstetricians and gynecologists in the 1990s, he created the first model that calculates the interplay between the economy and the climate.

Human activity has contributed to the rapid increases in average global temperatures over the last 100 years. 2018 economic sciences laureate william nordhaus’ research shows how economic activity interacts with basic chemistry and physics to produce climate change. #nobelprize pic.Twitter.Com/bjolc9qksx

The focus of this year’s prize comes as the united nations issued a dire warning on the urgent need to address climate change. Nordhaus has long cautioned that it’s “unlikely” that nations can achieve the targets set in the landmark paris agreement and that policy delays are raising the price of carbon needed to achieve the goals.

Uncertainty is no excuse for inaction, he said. “when the major parametric uncertainties are included, there is virtually no chance that the rise in temperature will be less than the target 2°C without more stringent and comprehensive climate change policies.”

The 62-year-old romer, who at the start of this year stepped down as chief economist at the world bank after a rocky term, has argued that policy makers should stop trying to fine-tune the business cycle and instead harness technology to foster growth. His work published in 1990 has served as the foundation for what’s called “endogenous growth theory,” a rich area of research into the regulations and policies that encourage new ideas and long-term prosperity.

Romer said he started investigating why economic growth was speeding up and came to realize in part it was due to the fact that more people were connected by technology. “globalization is just not about trading stuff,” he said at a press conference in new york. “it’s about sharing ideas.”

“both their methods and the core questions they’re addressing in the research are of the utmost importance to human welfare,” said jakob svensson, professor of economics and director of the institute for international economic studies at stockholm university. “I would hope that policy makers and politicians would use their findings to think about long-run global issues."

In a paper based on a 2016 january lecture, he declared: “for more than three decades, macroeconomics has gone backwards” by abandoning a commitment to facts in favor of models, romer wrote. American university address the “dismissal of fact goes so far beyond post-modern irony that it deserves its own label. American university football I suggest ‘post-real’,” he said.

Born in albuquerque, new mexico in 1941, nordhaus was an undergraduate at yale and earned a doctorate in economics from the massachusetts institute of technology in 1967. He returned to yale to teach that year and has been at the new haven, connecticut-based university since, except for a two-year stint as a member of president jimmy carter’s council of economic advisers from 1977 to 1979.