The economics of climate change, innovation wins the Nobel Prize for the American duo

The economics of climate change, innovation wins the Nobel Prize for the American duo https://www.eresviral.com/wp-content/uploads/2018/10/La-economía-del-cambio-climático-la-innovación-gana-el-Premio-Nobel-para-el-dúo-estadounidense

The economics of climate change, innovation wins the Nobel Prize for the American duo







STOCKHOLM (Reuters) - Americans William Nordhaus and Paul Romer, pioneers in adapting the western economic growth model to focus on environmental problems and share the benefits of technology, won the 2018 Nobel Prize in Economics on Monday. 











A combination photograph shows William D. Nordhaus (L) and Paul Romer, who won the Nobel Prize in Economics 2018, posing in undated photos provided to Reuters by Yale University and the NYU Stern School of Business on October 8, 2018. Yale University / NYU Stern School of Business / Brochures through REUTERS





In a joint prize that focused on a rapidly changing global debate on the impact of climate change, the Royal Swedish Academy of Sciences said the duo's work was helping answer basic questions on how to promote long-term sustainable prosperity. 

Romer, of the Stern School of Business at New York University and best known for his work on endogenous growth, a theory based on investment in knowledge and human capital, said the prize had surprised him, but offered a positive message . 

"I think one of the problems with the current situation is that many people think that protecting (the) environment will be so costly and so difficult that they just want to ignore them," he said at a press conference on the telephone. 

"We can absolutely make substantial progress in protecting the environment and doing it without giving up the opportunity to sustain growth." 

Hours before the award, the United Nations panel on climate change said society would have to radically change the way it consumes energy, travels and builds to avoid the worst effects of global warming. The panel declined to comment on the award on Monday.  









Paul M. Romer, who won the Nobel Prize in Economics 2018, poses in an undated photo provided by the Stern School of Business at the University of New York (NYU) in New York City, USA. UU., On October 8, 2018. through REUTERS



The president of the United States, Donald Trump, has repeatedly called climate change a hoax, and last year announced that he would withdraw the United States from a global pact to combat it in 2015, which called the demands of the United States very costly. reduction of emissions of the agreement.  

Nordhaus, a professor of economics at Yale University, was the first person to create a quantitative model that described the interaction between economics and climate, the Swedish academy said.  

"The key idea of ​​my work was to put a price on carbon to curb climate change," Nordhaus said in a Yale publication this year. "The main recipe ... is to make sure that governments, businesses and households face a high price for their carbon emissions."      

LARGE GLOBAL QUESTIONS 

Nobel committee chairman Per Stromberg told Reuters that Monday's award was a tribute to the investigation of "two big global issues": how to deal with the negative effects of climate growth and "to make sure that this growth economic leave prosperity for all. " 

Romer had shown how economic forces govern the willingness of companies to innovate, helping some societies grow much faster than others. By understanding what market conditions favor the creation of profitable technologies, society can design policies to promote growth, the academy said. 

Romer's career has taken him outside the academic world. While on leave from Stern School, he served as chief economist and senior vice president at the World Bank until the beginning of this year. 









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His work on endogenous growth theory is not universally admired. 

Nobel Laureate in Economics Paul Krugman told the New York Times in 2013 that much of this involved "making assumptions about how non-measurable things affected other non-measurable things." 

Monday's award of the last of the 2018 Nobels took place less than a month after the tenth anniversary of the collapse of investment bank Lehman Brothers. 

That caused an economic crisis of which the global financial system is still recovering.  

Interest rates remain at or near historic lows in many major economies, including Sweden, where they have languished below zero since the beginning of 2015. 

With a value of 9 million Swedish crowns ($ 1 million), the economy prize was established in 1968. It was not part of the original group of five awards established in the testament of Swedish industrialist Alfred Nobel of 1895. 

The physiology / medicine, physics, chemistry and peace awards were handed out last week. 

This year's procedures have been overshadowed by the absence of the literature prize, postponed to give the Swedish Academy time to restore public confidence after a sexual assault scandal. 

Graphic of the Nobel prizes tmsnrt.rs/2y6ATVW 





Report of Simon Johnson, Niklas Pollard; Additional reporting by Daniel Dickson, Helena Soderpalm and Anna Ringstrom in Stockholm; Edited by John Stonestreet





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