Two Americans sharing the 2018 Alfred Nobel Memorial Prize for Economics integrated climate change and technological innovations into long-run macroeconomic analysis.
William Nordhaus studied economies and the climate to develop a model that integrates theoretical and empirical information from physics, chemistry and economics to simulate how the global economy and the climate co-evolve and what climate policy interventions could be undertaken.
The research of Paul Romer demonstrated how economic forces drive the willingness of firms to invest in research that produces new ideas and innovations.
Image: Johan Jarnestad/The Royal Swedish Academy of Sciences
This story is taken from the 12 October 2018 edition of The Warren Centre’s Prototype newsletter. Sign up for the Prototype here.