Nobel Prize for Economic Sciences awarded to William Nordhaus, Paul Romer

The 62-year-old Romer, who this year stepped down from his post as chief economist at the World Bank, has argued that policy makers should stop trying to fine-tune the business cycle and instead take steps to promote new technology, which would ensure long-term growth.

He won the prize together with William Nordhaus of Yale University for separate research.

Nordhaus has been a prominent advocate of the use of a uniformly applied carbon tax as the best way to put a true cost on the use of burning fossil fuels and so reducing greenhouse gas emissions.

"The contributions of Paul Romer and William Nordhaus are methodological, providing us with fundamental insights into the causes and consequences of technological innovation and climate change".

The Nobel Prize in Economics was jointly awarded on Monday to Americans William Nordhaus and Paul Romer for integrating climate change and technological innovation into the macroeconomic analysis, the Royal Swedish Academy of Sciences announced.

"Many people think that dealing with protecting the environment will be so costly and so hard that they just want to ignore the problem".

Paul Romer, a former assistant professor of economics at the University of Rochester and now a professor at New York University, has been named a recipient of this year's Nobel Prize in Economic Sciences. He added that humans can accomplish a lot if they put their minds to it. The statement said Nordhaus was the first person to create a quantitative model that describes the global interplay between the economy and the climate. He demonstrated how economic forces govern the inclination of firms to produce new innovations and ideas.

Romer resigned from the World Bank in January 2018 after raising questions about how the institution was ranking countries.

Nordhaus is the 37th MIT alumnus to win a Nobel Prize and 90th victor with a connection to MIT.

The pair will share the nine million Swedish kronor (about $1.01 million or 860,000-euro) prize. Last year's prize went to American Richard Thaler for studying how human irrationality affects economic theory.

Paul Romer was awarded the the 2018 Nobel Memorial Prize in Economics Sciences. It was first awarded in 1969.

The US duo was awarded the 2018 Nobel Prize in Economic Sciences for developing new methods that serve for the welfare of the world's population and provides long-term sustainable growth in the global economy.

New York University (NYU) professor Paul Romer speaks at a news conference after being named a victor of the 2018 Nobel Memorial Prize in Economics with professor William D. Nordhaus of Yale University on October 8, 2018 in New York City.

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