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Peter Fredriksson, economics professor at Uppsala University, and member of the Economic Sciences committee, which awards an annual prize in the memory of Alfred Nobel. Credit: Brett Ascarelli / Radio Sweden

Nobel applauds research on how economy and climate change go hand-in-hand

3:43 min

"Integrating climate change" and "technological innovations into long-run macroeconomic analysis..." What does THAT mean? To explain what this year's Prize in Economic Sciences in Memory of Alfred Nobel is all about, prize committee member and economics professor Peter Fredriksson from Uppsala University, joins us.

US-born William Nordhaus, who won one half of the prize, started looking into the relationship between the economy and the climate back in the 70s, and he came up with a model to simulate how they affect each other. Professor Fredriksson discusses how Nordhaus's research has been used by the UN Intergovernmental Panel on Climate Change, the IPCC (which, incidentally, just published a big report today, warning that we've got just a dozen years to keep global warming at 1.5 degrees Celsius or less, in order to try to reduce the harm it can cause).

The other half of the prize went to another American, Paul Romer, who besides being an academic has also served as chief economist of the World Bank. Romer has written that economic decisions and market conditions determine how much companies feel encouraged to produce new ideas and innovation - which can lead to growth.

But some argue that economic growth is not compatible with preventing global warming. Fredriksson responds.

Brett Ascarelli, Radio Sweden

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