The Nobel Prize in Economics 2018 – officially named "Bank of Sweden Economic Science Prize in memory of Alfred Nobel" – fell to American economists William Norhaus and Paul Romer for his studies on the Theory of Endogenous Growth. Specifically, Nordhaus has been rewarded for its work on the damage caused by climate change by integrating this area into the macroeconomic analysis. For his part, Romer has been granted this recognition for integrating technological innovations within macro analyzes. In this sense, he has studied how economists can achieve a sustainable economic growth rate.
The models, which these two economists have created, are helping the development of economic growth and combating climate change by contributing to the creation of a more sustainable long-term economy, have stood out from the Royal Swedish Academy of Sciences in the press conference in which the name of the winners has been announced.
From the Royal Swedish Academy of Sciences have pointed out that the contributions of Paul Romer and William Nordhaus are essentially methodological «And give us key knowledge of the causes and consequences of technological innovation and climate change ». In the opinion of the prestigious institution, this year's laureates have not reached "definitive" conclusions, but have added that the results of their investigations «We have approached the answer how to achieve sustainable global growth ».
Paul Romer has shown during the announcement press conference of the winners, optimistic about climate change and he has assured that the world will be able to solve the problem, if measures are taken already. He has also found that the future of the planet is in doubt does not help either.
Reduction of emissions
In this regard, he pointed out that "when we start trying to reduce carbon emissions, we will be surprised that It was not as complicated as we thought » and has warned that more alarmist reports can create hopelessness. "It is totally feasible," Romer underlined on the reduction of emissions while implementing standards of life and sustainable economic growth .: "If we do the right thing, everything will go well. Now is the time to act, "he underlined.
In Romer's opinion, "one of the current problems is that people believe that climate protection It will be so expensive and harsh that they prefer to ignore the problem and pretend that it does not exist. Humans are capable of incredible things, if we all work together. " In this sense, he has confessed as an anecdote to have ignored lost calls, thinking that it was spam. Romer who has confessed to having ignored calls from the Royal Swedish Academy of Sciences, thinking that it was spam.
Last year the award went to the American Richard H. Thaler for his studies of behavioral economics. The economist is known for his theories in behavioral finance and for his collaboration with Daniel Kahneman.