Nobel prize for economics awarded to William D. Nordhaus and Paul M. Romer

The Nobel Economics Prize has been awarded to William Nordhaus and Paul Romer for work on climate change and innovation.
In awarding the Nobel prize in economics, the Swedish Royal Academy of Sciences cited William Nordhaus for showing that "the most efficient remedy for problems caused by greenhouse gases is a global scheme of universally imposed carbon taxes."
A faculty member at Yale University since 1967, Nordhaus' research has focused on economic growth and natural resources, and the economics of climate change. His economic approaches to global warming include modeling to determine the efficient path for coping with climate change.
He's also studied wage and price behavior, health economics, augmented national accounting, the political business cycle, productivity, and the "new economy." His current work on what he calls his "G-Econ project" promises to provide the first comprehensive measures of economic activity at a geophysical scale.
The Swedish Royal Academy said that the work of Paul Romer, who shared the award announced Monday, showed "economic forces govern the willingness of firms to produce new ideas and innovations."