The 2018 Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel, more commonly known as the Nobel prize for economics, has been awarded to William Nordhaus and Paul Romer for innovation, climate and economic growth.

Why Nordhaus and Romer have won

William Nordhaus is being recognised for his work on the damage caused by climate change, reports theguardian.com.

Paul Romer has examined how economists can achieve a healthy rate of economic growth.

The models that Nordhaus and Romer have created have helped with the development of economic growth, and with combatting climate change, we’re hearing.

They have taken macroeconomics to a global scale, to tackle some of the world’s biggest problems, the Nobel Prize committee say.

This is the 50th Nobel prize for economics that the institution awarded since 1969. The winner receives a cheque for nine million kronor ($1m), a diploma, and a gold medal, all of which will handed over at a formal ceremony in Stockholm on 10 December, reports sports.yahoo.com.

Elinor Ostrom was the only woman to win the economics prize since 1969. She claimed the prize back in 2009.

Last year, the pioneer in behavioural economics, Richard Thaler, won the prize, thanks to his ‘nudge theory,’ which has dramatically influenced politicians and policymakers. Essentially, he examined how gut instincts can often overrule rational choices and that people can be influenced by ‘prompts’ to alter their behaviour. For example, by changing the wording on tax demands or organ donation. Thaler previously said: ‘I wasn’t a great student. My thesis advisor famously said: ‘We didn’t expect much of him’.’

It was widely tipped that research on the climate or development and the impact on the global economy would win the accolade. However, the nominations and deliberations are highly secretive, so it’s hard to truly gauge which way the prize committee would vote.

A report released today (8 October) by the Nobel Prize-winning Intergovernmental Panel on Climate Change said the world has just got 11 years to contain global warming. The landmark report said that ‘unprecedented’ action needs to be taken to prevent 1.5C of global warming by 2030.