Americans William Nordhaus and Paul Romer won the 2018 Nobel Economics Prize for work in integrating climate change and technological innovation into economic analysis, the Royal Swedish Academy of Sciences said on Monday.
Nordhaus, of Yale University, was the first person to create a quantitative model that described the interplay between the economy and the climate, the academy said.
Romer, of New York University’s Stern School of Business, has 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.
Worth 9 million Swedish crowns, the economics prize was established in 1968. It was not part of the original group of five awards set out in Swedish industrialist Alfred Nobel’s 1895 will.
The Nobel prizes for physiology or medicine, physics, chemistry and peace were awarded last week.
This year’s awards have stood out for two reasons.
Three women have been awarded Nobel prizes, an unusually large number for a single year.