Question

A) Who was Paul Romer and William Nordhaus what were their major contribution to economics? B) How does their contribution relate to the principles of economics? C) How do these contribution run counter to the recent headlines of the “Terrifying Climate Change” report from the UN? D) How can this be related to Thomas Malthus?

Answer 1

Paul Romer and William Nordhaus are Macroeconomist and won sviriges Riksbank price in economic science in the year 2018 working on long run dynamics and put forth the views on spur economic growth and importance of economic growth. They also contributed to overcome the problem of climate change.

Ans B

The contributions can be related to basic principles of economics and there are follows:

1. People face tradeoff as the have to produce new product with the innovative ideas which have to under the limits of carbon taxes and this influence the opportunity cost and thereby government can sometimes in a good position to organise market activities through imposition of carbon taxes which will influence the standard of living and imporve quality of life .

Ans C

Both Romer and Nordhaus have contributed in same way. Economic growth according to them should not be only to increase the output through factories and technology and thereby influence growth by their choice, where the speed of growth can be achieved by exchanging ideas (Romer) and how this growth should be sustainable (Nordhaus), addressing one of the most fundamental issue of current scenario.

Nordhaus proposed the solution to the problem faced by world climate changing and environmental degradation, the remedy to this problem basically caused due to emissions of green house gases is to impose carbon taxes uniformly on all countries. And explained the inter relationship among the nations and the climate

Romer has explained how collection of new ideas by form or individuals sustain long run economic growth, which are governed by economic forces. The economic forces influence the willingnes of firms to produce a new commodity with new ideas and innovations