Nobel Prize for Economic Sciences awarded to Yale, NYU professors

Oct. 8 (UPI) -- The Royal Academy of Sciences on Monday awarded Nobel Prizes in Economic Sciences to two American university professors.

Yale University's William Nordhaus was awarded the prize for his work in long-term macroeconomic analysis related to climate change. New York University's Paul Romer won for his work on factoring technological innovation into macroeconomics.

Nordhaus' research focuses on global carbon taxes to offset greenhouse gas emissions. His economic simulations show various scenarios where carbon taxes are implemented worldwide.

The two will share the $1.01 million prize.

Laureate William Nordhaus' research shows that the most efficient remedy for problems caused by greenhouse gas emissions is a global scheme of carbon taxes uniformly imposed on all countries. The diagram shows CO2 emissions for four climate policies according to his simulations. pic.twitter.com/tmxUE6MiLn

- The Nobel Prize (@NobelPrize) October 8, 2018

Romer's research demonstrates how economic forces govern the willingness of companies to produce new ideas, innovations and long-term prosperity.

The Nobel Prize for Economic Sciences wasn't part of the original list of awards created by Alfred Nobel in his will, which were given last week. The economic sciences prize was established in 1969 by Sweden's central bank.

The Nobel Prize in Literature has been postponed because the institution that awards it faces allegations of sexual misconduct, financial malpractice and repeated leaks. Several board members have been forced out, and the institution could award two prizes in 2019.

Romer's research laid the foundation of what is now called endogenous growth theory. The theory has generated vast amounts of new research into the regulations and policies that encourage new ideas and long-term prosperity. #NobelPrize

- The Nobel Prize (@NobelPrize) October 8, 2018