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

'83) has won the 2018 Nobel Prize in Economics for his work on preserving economic growth, sharing the award with Yale professor William Nordhaus.

In an award that turned the spotlight on the global debate over risks associated with climate change, the Royal Swedish Academy of Sciences said the laureates' work helped answer fundamental questions on how to promote long-term sustainable growth and enhance human welfare.

A faculty member at Yale University since 1967, Nordhaus' research has focused on economic growth and natural resources, and the economics of climate change.

The two economists will share the 9 million Swedish kronor ($1.01 million, €860,000) prize.

Romer's career has taken him outside the academic world. Romer is a former World Bank chief economist now at New York University's Stern School of Business.

His research has led to the formation of a new theory dubbed as endogenous growth theory.

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"If we set about making the policy changes that are required here, we can absolutely make substantial progress toward protecting the environment and do it without giving up the chance to sustain growth", Romer said via phone during a news conference. He showed that "the most efficient remedy for problems caused by greenhouse gases is a global scheme of universally imposed carbon taxes". "The theory has generated vast amounts of new research into the regulations and policies that encourage new ideas and long-term prosperity".

That theory demonstrates how people can be persuaded to make decisions that leave them healthier and happier.

The laureates of the Nobel Prize in Economics, William Nordhaus, left, and Paul Romer, are seen at a press conference at The Royal Swedish Academy of Sciences in Stockholm, on October 8, 2018.

Per Krusell, one of the panel that awarded the prize, said both men were part of the same agenda, thinking about "long-run, global" issues.

The Nobel, which also consists of a diploma and a gold medal, will be presented at a formal ceremony in Stockholm on December 10.

This is the final Nobel prize to be announced this year.

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