Paul Romer, Alfred Nobel, Nobel Prize discussed on Morning Edition

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I'm David green. And I'm Noel king. Good morning this morning. The winners of the Nobel prize in economics were announced the price will be split by two economists. William Nord house and Paul Romer Nick fountain from our planet money podcast is with me now. Good morning, Nick happy Eka Nobel day before we get to the winners. We should clarify something or I know we will get e mails from communists. It's not actually the Nobel prize in economics. Right. Yes. I'm going to try to pronounce this right now. It's the spare keys Riksbank prize in economic sciences in memory of Alfred Nobel, and that's for a bunch of political reasons. But also because economics really wants to be known as a science and with this year's pick. They went straight towards science. It's interesting one of the economists. William Nord house is known for talking about the economy and climate together. Right. He's an economist at Yale. And he's been thinking about how the economy interacts with the environment and climate for decades. Now this morning I called up Justin wolford's. He's an economics professor at the university of Michigan. And he explained his work to me the so size is if you leak markets alone, you won't get good outcomes on the environmental side. And the reason is simple every time you fire up your factory, you're thinking about your profits. But at the same time, you'll stink it up by greenhouse gases. And so north houses work is about how we need incentives to push us in the right directions. Like things like cap and trade, for instance, really interesting choice, and how about his co-winner Paul Romer. What is he known for? Right. Quick aside here. Paul Romer works at NYU. He got a couple of calls this morning, but he did not answer them. Phone calls this morning, and I didn't answer either one because I thought it was some spam. Call so I wasn't. I wasn't expecting the prize. Anyways, his work is about growth, and why economies grow? And his question is will they grow forever and just in Welford explained to me that his research says it's ideas that make economies grow holding. So is that the infrastructure creating new ideas is the injured Rubert economic growth, we need to pay attention to patents the number of scientists that are out there incentives to do science, and as long as we can keep generating new ideas, we can generate economic so in both of these choices in Nordhausen Romer, the Nobel committee. This year is saying this work about making governments think about how to make have the right incentives for people to do things that we want them to do to prevent climate change to continue to grow. That stuff is really important nicotine's worth noting the economics Nobel is celebrating its fiftieth year this year, and yet only one woman has ever won the. Price. Right. A lot of people thought that we might have another woman this year. The only woman is Elinor Ostrom Ostrom. She won the Nobel in two thousand nine and fifty years is a long time for only one woman NPR's Nick fountain from our planet money team, Nick, thanks so much. Thanks to L. Support for planet. Money comes from his Cox insurance, offering the Hiscox cyber readiness report to.

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