Climate change economists win Nobel prize

  • Climate change economists win Nobel prize

Climate change economists win Nobel prize

Coming to Nordhaus' research, it consists of a quantitative model that demonstrates that how economic activity interacts with basic chemistry and physics to produce climate change.

Carbon taxes let producers pay for the costs of these releases.

"One problem today is that people think protecting the environment will be so costly and so hard that they want to ignore the problem and pretend it doesn't exist".

"It's an ingenious pairing", said David Warsh, author of the 2007 book Knowledge and the Wealth of Nations about the award.

U.S. President Donald Trump has repeatedly called climate change a hoax, and previous year announced that he would withdraw the United States from a global pact to combat it reached in 2015, calling the deal's demands for emissions cuts too costly.

Romer's career has taken him outside the academic world.

Nordhaus says bringing countries together to solve the climate change problem is the "last frontier" for the issue, arguing that the science has been settled.

"Humans are capable of wonderful accomplishments if we set our minds to it", Romer added.

As with the other Nobels, nominations and deliberations are kept secret, so it's almost impossible to know which way the prize committee is leaning each year.

Romer, in turn, won for his research showing "how the accumulation of ideas sustains long-term economic growth".

Many economists have since endorsed the concept of taxing carbon and using this financial lever to influence societal behaviour.

Romer is the son of Roy Romer, the former governor of Colorado credited with the state's economic growth in the 1990s.

In studying the relationship of innovation and growth, Romer discovered that unregulated economies generally failed to encourage enough research and development to support lasting growth. This explains how ideas are different from other physical goods and require certain conditions to thrive in a market. Five people have won the Nobel Prize in economic sciences while serving as members of the MIT faculty; another 11 MIT alumni, including Nordhaus, have won the prize.

Although the Prize in Economic Sciences is not a Nobel Prize, it is awarded according to the same principles followed when handing out the other Nobel Prizes.

The prize is awarded in memory of Alfred Nobel.

Last year, the honor went to United States economist Richard Thaler, a co-founder of the so-called "nudge" theory, which demonstrates how people can be persuaded to make decisions that leave them healthier and happier.