STOCKHOLM: The Nobel Prize in Economic Sciences was awarded to William Nordhaus for his work on climate economics and Paul Romer for his work on the endogenous growth theory, the Royal Swedish Academy of Sciences announced on Monday.
"Their findings have significantly broadened the scope of economic analysis by constructing models that explain how the market economy interacts with nature and knowledge," the academy said in a statement.
“William Nordhaus and Paul Romer, awarded the 2018 Prize in Economic Sciences, have designed methods that address some of our time’s most fundamental and pressing issues: long-term sustainable growth in the global economy and the welfare of the world’s population,” the official Twitter handle of Nobel Prize posted.
Nordhaus’ research shows that the most efficient remedy for problems caused by greenhouse gas emissions is a global scheme of carbon taxes uniformly imposed on all countries.
Romer’s research shows how the accumulation of ideas sustains long-term economic growth. He demonstrated how economic forces govern the willingness of firms to produce new ideas and innovations, the Nobel Prize handle added in the tweet.
Last year, the Sveriges Riksbank Prize in Economic Science was awarded to Dr Richard H Thaler for his contributions to behavioural economics. Thaler is a professor of Behavioural Science and Economics at the University of Chicago in the United States.
The economics prize was established in 1968. The Sveriges Riksbank Prize in Economic Sciences is awarded in memory of Swedish philanthropist Alfred Nobel. They will share a $1-million cash prize.