“I think … many people think that protecting the environment will be so costly and so hard that they just want to ignore [this],” he told a news conference via phone link. “We can absolutely make substantial progress protecting the environment and do it without giving up the chance to sustain growth.”
- The Nobel Prize is a set of six annual international awards bestowed in several categories by Swedish and Norwegian institutions in recognition of academic, cultural, or scientific advances.
- The will of the Swedish scientist Alfred Nobel established the prizes in 1895. The Nobel Prize is widely regarded as the most prestigious award available in the fields of literature, medicine, physics, chemistry, economics and activism for peace.
- In 2009, the monetary award was 10 million SEK (US$1.4 million). In June 2012, it was lowered to 8 million SEK. It is common for recipients to donate prize money to benefit scientific, cultural, or humanitarian causes
WILLIAM DAWBNEY NORDHAUS
- William Dawbney Nordhaus is an American economist and Sterling Professor of Economics at Yale University, best known for his work in economic modelling and climate change.
- Nordhaus received the prize “for integrating climate change into long-run macroeconomic analysis“. Nordhaus was born in Albuquerque, New Mexico.
- Nordhaus graduated from Phillips Academy in Andover and subsequently received his BA and MA from Yale in 1963 and 1973 and a PhD from MIT (1967).
- Nordhaus was a member of the Council of Economic Advisers. Nordhaus served as the chairman of the Board of Directors of the Boston Federal Reserve Bank between 2014 and 2015.
- Nordhaus received the prize “for integrating climate change into long-run macroeconomic analysis“. Nordhaus, of Yale University, was the first person to create a quantitative model that described the interplay between the economy and the climate, the Royal Swedish Academy of Sciences said 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 statement.
THE DEVILS WEAPON- CARBON
- William Nordhaus shared the Nobel Prize for economics for his pathbreaking work on carbon pricing.Nordhaus has been writing for four decades about climate change and the value of using prices to reduce carbon emissions.
- His research shows that raising prices through, say, a carbon tax, is a far more effective and efficient way to lower carbon emissions.
- Higher prices will encourage firms and consumers to find alternatives to carbon-based products as well as encourage new technologies that will make those substitutes competitive.
- The UN’s Intergovernmental Panel on Climate Change concluded that the world must decrease net carbon dioxide (CO2) emissions by nearly 50 percent by 2030 and eliminate them by 2050 to maintain much of the planet’s livability.
- Paul Michael Romer is an American economist, a pioneer of endogenous growth theory, and a co-recipient of the 2018 Nobel Memorial Prize in Economic Sciences.
- He was Chief Economist and Senior Vice President of the World Bank until he resigned in January 2018.
- Romer was a professor of economics at the University of Chicago, the University of California, Berkeley, and the Stanford University’s Graduate School of Business.
- Romer was awarded the Nobel Memorial Prize in Economics in 2018 “for integrating technological innovations into long-run macroeconomic analysis“. He shared the 2018 Nobel with William Nordhaus.
- Endogenous growth theory holds that economic growth is primarily the result of endogenous and not external forces or it is an economic theory which argues that economic growth is generated from within a system as a direct result of internal processes.
- Endogenous growth theory holds that investment in human capital, innovation, and knowledge are significant contributors to economic growth.
- The theory also focuses on positive externalities and spillover effects of a knowledge-based economy which will lead to economic development.
- The endogenous growth theory primarily holds that the long run growth rate of an economy depends on policy measures. For example, subsidies for research and development or education increase the growth rate in some endogenous growth models by increasing the incentive for innovation.