2018 Nobel Economics Prize: Integrating Climate Change Measures into Sustainable Economic Growth

2018 ◽  
Vol 34 (4) ◽  
Author(s):  
Nguyen Thi Thuc An ◽  
Dau Kieu Ngoc Anh
Keyword(s):  
Climate Change ◽  
Economic Growth ◽  
Endogenous Growth ◽  
Environmental Issues ◽  
Growth Theory ◽  
Endogenous Growth Theory ◽  
Technological Advances ◽  
Academy Of Sciences ◽  
Sustainable Economic Growth

The 2018 Nobel Economics Prize was awarded to two American economists - William D. Nordhaus and Paul M. Romer - who designed methods for better assessing environmental issues and technological advances on growth. This year’s Laureates, Nordhaus was the first person to create an intergrated model to assess interactions between society and nature and Romer laid the foundation for what is now called endogenous growth theory. According to the Swedish Royal Academy of Sciences, these two macroeconomists’ research have helped “significantly broaden the scope of economic analysis by constructing models that explain how the market economy interacts with nature and knowledge” which integrates climate change measures into long-term sustainable economic growth. Keywords Nobel in economics, William D. Nordhaus, Paul M. Romer, climate change, endogenous growth theory, economic growth References [1] Y Vân (2018), “Lý lịch 'khủng' của hai nhà khoa học vừa giành giải Nobel Kinh tế 2018”, Vietnambiz, đăng tải ngày 08/10/2018, https://vietnambiz.vn/ly-lich-khung-cua-hai-nha-khoa-hoc-vua-gianh-giai-nobel-kinh-te-2018-95776.html[2] Jonas O. Bergman, Rich Miller (2018), “Nordhaus, Romer Win Nobel for Thinking on Climate, Innovation”, đăng tải ngày 8/10/2018, https://www.bloomberg.com/news/articles/2018-10-08/nordhaus-romer-win-2018-nobel-prize-in-economic-sciences [3] Antonin Pottier (2018), “Giải Nobel” William Nordhaus có thật sự nghiêm túc?”, Nguyễn Đôn Phước dịch, đăng tải ngày 11/10/2018, http://www.phantichkinhte123.com/2018/10/giai-nobel-william-nordhaus-co-that-su.html[4] Thăng Điệp (2018), “Giải Nobel kinh tế 2018 về tay hai người Mỹ”, đăng tải ngày 8/10/2018, http://vneconomy.vn/giai-nobel-kinh-te-2018-ve-tay-hai-nguoi-my-20181008185809239.htm[5] Lars P. Syll (2018), “Cuối cùng - Paul Romer cũng có được giải thưởng Nobel”, Huỳnh Thiện Quốc Việt dịch, đăng tải ngày 14/10/2018, http://www.phantichkinhte123.com/2018/10/cuoi-cung-paul-romer-cung-co-uoc-giai.html[6] Phương Võ (2018), “Nobel Kinh tế 2018: Chạm tới bài toán khó của thời đại”, đăng tải ngày 9/10/2018, https://nld.com.vn/thoi-su-quoc-te/nobel-kinh-te-2018-cham-toi-bai-toan-kho-cua-thoi-dai-20181008221734228.htm[7] Đông Phong (2018), “Nobel Kinh tế cho giải pháp phát triển bền vững và phúc lợi người dân”, đăng tải ngày 8/10/2018, https://news.zing.vn/nobel-kinh-te-cho-giai-phap-phat-trien-ben-vung-va-phuc-loi-nguoi-dan-post882860.html[8] Thanh Trúc (2018), “Giải Nobel kinh tế 2018: Thay đổi tư duy về biến đổi khí hậu”, https://tusach.thuvienkhoahoc.com/wiki/Gi%E1%BA%A3i_Nobel_kinh_t%E1%BA%BF_2018:_Thay_%C4%91%E1%BB%95i_t%C6%B0_duy_v%E1%BB%81_bi%E1%BA%BFn_%C4%91%E1%BB%95i_kh%C3%AD_h%E1%BA%ADu[9] Cẩm Anh (2018), “Nobel kinh tế 2018: Lời giải cho tăng trưởng kinh tế bền vững”, đăng tải ngày 11/10/2018, http://enternews.vn/nobel-kinh-te-2018-loi-giai-cho-tang-truong-kinh-te-ben-vung-137600.html.

scholarly journals Endogenous growth theory and regional development policy

Spatium ◽  
2015 ◽  
pp. 10-17
Author(s):  
Slobodan Cvetanovic ◽  
Milorad Filipovic ◽  
Miroljub Nikolic ◽  
Dusko Belovic
Keyword(s):  
Economic Growth ◽  
Regional Development ◽  
Endogenous Growth ◽  
Driving Forces ◽  
Growth Theory ◽  
Regional Competitiveness ◽  
Endogenous Growth Theory ◽  
Neoclassical Growth Theory ◽  
Neoclassical Growth

The numerous versions of endogenous explanations of economic growth emphasize the importance of technological change driving forces, as well as the existence of appropriate institutional arrangements. Endogenous growth theory contributes to a better understanding of various experiences with long-term growth of countries and regions. It changes the key assumptions of the Neoclassical growth theory and participates in the modern regional development physiology explanation. Based on these conclusions, the paper: a) explicates the most important theoretical postulates of the theory, b) explains the most important factors of economic growth in the regions in light of the Endogenous growth theory messages and c) emphasizes the key determinants of regional competitiveness which in our view is conceptually between the phenomena of micro- and macro-competitiveness and represents their necessary and unique connection. First of all, micro-competitiveness is transformed into a regional competitiveness; then regional competitiveness is transformed into a macro-competitiveness. In turn, macro - influences the microeconomic competitiveness, and the circle is closed. After that, the process starts over again.

Developing an economy based on knowledge and innovation in the context of the middle income trap

2015 ◽  
Vol 60 (10) ◽  
pp. 56-74
Author(s):  
Paweł Wieczorek
Keyword(s):  
Economic Growth ◽  
New Technologies ◽  
Current Model ◽  
Growth Theory ◽  
Labor Costs ◽  
Average Income ◽  
Middle Income ◽  
Endogenous Growth Theory ◽  
Middle Income Trap

The article is a contribution to the discussion on the necessity to change the current model of economic growth of Poland for model of economy based on knowledge and innovation. In this way, our country will be able to overcome the threats that might push the economy into the trap of the average income, expressed in long-term slowdown in GDP growth. The endogenous growth theory, formed after 1989 and characterized by duplication of Western technology, enabled relatively rapid growth by over 20 years. Currently, Poland to ensure an economic growth is facing the need for innovative technologies and innovation. Risks associated with middle income trap are very real because of the disappearance of comparative advantage, which results from relatively low labor costs. The creation in Poland conditions to accelerate economic growth requires action to increase the propensity of entrepreneurs to reach for new technologies and innovation and attractive market offer from the national centers for research and development.

A Survey of Economic Growth

2014 ◽  
pp. 73-103
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Endogenous Growth ◽  
Productivity Growth ◽  
Driving Force ◽  
Growth Theory ◽  
Social Infrastructure ◽  
Solow Model ◽  
Neoclassical Theory ◽  
Endogenous Growth Theory

This chapter is a survey of the two prominent theories of economic growth (the neoclassical theory as proposed by Solow [1956] and the endogenous growth theory that originated from the seminal works of Romer [1986]). To date, works following these have essentially been their extensions/refinements and some of the important extensions have also been summarised in this chapter. The current chapter discusses their major findings and implications for policy. It is also shown that the Solow model can be extended and used for policy. The endogenous growth theory, although stated to have some drawback, is useful for policy, as it has added new thoughts on how productivity may be generated. The chapter remains highly theoretical and derivations are suppressed, unless they become necessary. This survey finds that while the driving force of growth has been known since Solow's proposition, the endogenous models have provided some discussions on how economies may achieve productivity growth. Some important sources of productivity advancements that have been suggested are through human capital, research and development, innovations, knowledge creation, and supportive institutions and social infrastructure.

scholarly journals The Commercialization of the Knowledge as the Supposition of the Economic Growth

2012 ◽  
Vol 5 (19) ◽  
pp. 423-433
Author(s):  
Viera Kubičková ◽  
Ladislav Bažó ◽  
Roman Staňo
Keyword(s):  
Economic Growth ◽  
Endogenous Growth ◽  
Slovak Republic ◽  
Growth Theory ◽  
Main Role ◽  
The Public ◽  
Endogenous Growth Theory ◽  
Entire Economy

Abstract The Endogenous growth theory assumes that the economy automatically benefits from its investments in to the knowledge. The knowledge is the public ware that can be used by the Entire economy. It leads to the innovation and the economic growth. The entrepreneurship has the main role in the successful process of the commercialization of the knowledge. The aim of this article is to present the situation of this process in the enterprises in the Slovak Republic.

scholarly journals Institutions as the Driver of Economic Growth in Classic, Neoclasic and Endogenous Theory

2019 ◽  
Vol 57 (1) ◽  
pp. 111-125 ◽  
Author(s):  
Slobodan Cvetanović ◽  
Uroš Mitrović ◽  
Marko Jurakić
Keyword(s):  
Economic Growth ◽  
Endogenous Growth ◽  
Theoretical Models ◽  
Growth Theory ◽  
Endogenous Growth Theory ◽  
Economic Progress ◽  
Production Factors ◽  
Classical Economic ◽  
The Impact ◽  
Neoclassical Growth Theory

AbstractThe research in this paper focuses on the perception of institutions as the drivers of economic growth. A critical presentation of the views of classical, neoclassical and endogenous growth theorists on this issue is given. It was pointed out that the classical economic theory presented in the works of Smith, Ricardo and Malthus implies the importance of the existence of an appropriate institutional framework for initiating economic growth. The attitude of the classics is that the state can stimulate economic growth through various measures aimed at building quality institutions. On the contrary, the neoclassical growth theory has completely neglected the treatment of institutions in the analysis of economic growth. Institutions as drivers of economic growth are not taken into account in the Robert Solow’s model. However, broadly speaking, it can be assumed that the impact of institutions on the initiation of economic growth is embedded in the category of residuals and the premise of the existence of a high substitution of production factors. But, this fact, even from a distance, does not call into question the general conclusion about the unacceptable neglect of the importance of institutions in explaining the physiology of economic growth by neoclassicists. Finally, the paper emphasizes the fact that only with the emergence of an endogenous growth theory, the question of the underdevelopment of the institutions as an important model of slow economic progress of certain countries is explored. Unfortunately, the developed theoretical models of growth, which include institutions as a full concept, still do not exist in the endogenous theory of economic development.

scholarly journals Public Policy, Innovation and Economic Growth: An Economic and Technological Perspective on Pakistan’s Telecom Industry

2016 ◽  
Vol 21 (Special Edition) ◽  
pp. 369-391 ◽  
Author(s):  
Musleh Ud Din ◽  
Inayat Ullah Mangla ◽  
Muhammad Jamil
Keyword(s):  
Economic Growth ◽  
Public Policy ◽  
Policy Innovation ◽  
Growth Theory ◽  
Comprehensive Strategy ◽  
Technology And Innovation ◽  
Endogenous Growth Theory ◽  
Technological Modernization ◽  
Sustainable Economic Growth

At a time of rapid technological advancements in every field, Pakistan must develop a comprehensive strategy for harnessing science and technology to promote economic growth on a sustained basis. In recent decades, successful economies have moved away from factor accumulation models of economic growth to productivity led growth that is underpinned by technological advancements and innovations. Using the endogenous growth theory as a framework of analysis, the paper will provide a macroeconomic perspective on the importance of technology and innovation for sustainable economic growth. We argue that public policy must be geared to generate robust growth by encouraging investment in research and development (R&D) and human capital. The paper will conceptualize the role of technology in the process of economic growth and identify policy areas that can be instrumental in promoting technological modernization and innovations.

scholarly journals How Stock Markets Development Affect Endogenous Growth Theory

2016 ◽  
Vol 2 (4) ◽  
pp. 13
Author(s):  
Najeb Masoub
Keyword(s):  
Economic Growth ◽  
Stock Market ◽  
Endogenous Growth ◽  
Financial Development ◽  
Capital Accumulation ◽  
Growth Models ◽  
Recent Analysis ◽  
Growth Theory ◽  
Endogenous Growth Theory ◽  
Stock Market Performance

<p>This paper can be described as a significant exploratory study that will provide a significant contribution to knowledge to consider crucial issues which need to be barriers to understanding or a temptation/ requirement to judge some practices as ‘better’ than others for stock market development effective approach and implement successful stock market performance and economic growth. Recent analysis of the link between financial development and growth, gained from insights acquired as a result of using the technique of endogenous growth models, has illustrated that growth without exogenous technical progress and that growth rates could be related to technology, income distribution and institutional arrangements. This provides the theoretical background that empirical studies have lacked; illustrating that financial intermediation affects the level of economic growth. Resulting models have provided new impetus to empirical research of the effects of financial development. The birth of the new endogenous growth theory has facilitated the development of improved growth models where the long-term rate could be affected by a number of elements. These included technology, education and health policies in the process of economic development, capital accumulation, government policies and institutional activities in the role of financial development in economic growth.</p>

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