The 2018 Nobel Memorial Prize in Economic Science was awarded on Monday to the American economists William D. Nordhaus and Paul M. Romer for reshaping the understanding of the long-term determinants of economic growth.
Mr. Nordhaus was cited for his work on the implications of environmental factors, including climate change. Mr. Romer was cited for his work on the importance of technological change.
Mr. Nordhaus, a professor of economics at Yale University, pioneered the economic analysis of climate change. He is also a leading proponent of the use of carbon taxation to reduce emissions, a policy approach preferred by many economists.
The announcement of the award came the same day that a United Nations panel on climate change releaseda report warning of dire consequences from climate change and urging governments to respond to the problem with greater urgency. The report builds on and cites Mr. Nordhaus’s work. Mr. Romer, a professor of economics at New York University, was honored for his work explaining the role of ideas in fostering economic growth.