William Nordhaus, Paul Romer awarded Nobel Economics Prize

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

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. At its most basic level, the model says the economy needs fuel to function, which in turn creates greenhouse gas emissions that lead to climate change. "Without him, there wouldn't be such a subject of climate economics". His economic simulations show various scenarios where carbon taxes are implemented worldwide. The model pulls theories and data from chemistry, physics and economics and is used to explore the possible effects of climate policy interventions. His economic approaches to global warming include modeling to determine the efficient path for coping with climate change.

Romer, of New York University's Stern School of Business, had shown how economic forces govern the willingness of firms to produce new ideas and innovations, laying the foundations for a new model for development, known as endogenous growth theory.

Romer laid the foundation for "endogenous growth theory", which predicts economic growth based on internal factors such as investment in human capital rather than exclusively on external factors, such as bringing in more advanced equipment and technology from the outside.

Romer said that a lot of people ignore climate change as they are under the impression that protecting the environment may be too costly. Apart from this, he obtained an MA and a PhD in Economics from the University of Chicago in 1978 and 1983 respectively.

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Who knows, but it came shortly after Brent rose its highest level in four years, which seems unlikely to be a coincidence. So far, OPEC has ruled out any further production increase, beyond fully delivering the boost agreed in June.

"'I didn't ever want it, but, yeah, I'll accept!'" he recalled replying at a separate news conference later at New York University.

"We overslept and when we got up, I got a nice call from my daughter", Nordhaus told Reuters at his home in New Haven, Connecticut.

He has been a faculty member at Yale since 1967.

Only one woman, Elinor Ostrom, has won the prize, and Leonid Hurwicz is the oldest person to be awarded a Nobel prize.

Unlike the other Nobel prizes which were created in Swedish inventor and philanthropist Alfred Nobel's will and first awarded in 1901, the economics prize was started by the Swedish central bank in 1968 to mark its tricentenary.