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.
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.
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.
William Nordhaus, of Yale University in New Haven, Connecticut, built a model that integrated economics, the carbon cycle and climate theory. The model pulls theories and data from chemistry, physics and economics and is used to explore the possible effects of climate policy interventions.
New academic work is beginning to combine Romer's and Nordhaus' models by studying how investment in research and development can lead to new technologies that replace fossil fuels, for example.
The economics prize is the last of the Nobel awards to be announced this year.
George Alessandria, the chair of Rochester's Department of Economics, says the members of the department are thrilled that Romer is being recognized with the Nobel Prize.
Nordhaus made his name by warning policymakers during the first stirrings of concern about climate change in the 1970s that their economic models were not properly taking account of the impact of global warming and he is seen as one of the pioneers of environmental economics.
"Many people think that dealing with protecting the environment will be so costly and so hard that they just want to ignore the problem", Romer said by telephone to the Swedish academy.
"I've been really disappointed that we just haven't had the kind of political environment where we can think about speeding up technological progress", Paul Romer said Monday.
He won the prize together with William Nordhaus of Yale University for separate research. Both Romer and Nordhous have greatly influenced my thinking on numerous things I write about here at Techdirt, specifically when it comes to the economics of innovation, and, more specifically, the economics of information and so-called "non-rivalrous" goods (I prefer to call them "infinite goods").
Romer resigned from the World Bank in January 2018 after raising questions about how the institution was ranking countries. This includes the relationship between technology innovation and economic growth, which makes the second recipient very relevant too.
Three women have been awarded Nobel prizes, an unusually large number for a single year.
Congolese gynaecologist Denis Mukwege and Social Justice Warrior Nadia Murad received the prestigious Nobel Peace Prize "for their efforts to end the use of sexual violence as a weapon of war". A total of 81 laureates have been named over the prize's 50 year history.