Paul Roma: the innovation activities of Companies can solve the climate crisis

That Paul Romer will get the prize in economic sciences in memory of Alfred Nobel for his research precisely because his research on growth. He has lifted up technological progress, increased knowledge and innovation in the economic models, which have been revolutionary.

It is called endogenous growth and is about the long-term development, which is crucial for the future prosperity. Most importantly, better education that reaches as many people as possible, " stresses Paul Roma.

– as Such, we have not seen in the united states, but on the other hand, China has taken major steps forward. The same opportunity exists in other countries, both rich and poor. It comes to do their best possible, on the basis of the conditions.

he sees, however, is not a self-evident way:

– You should mainly look at the quality of the research, not on how much is wagered. It should be set higher demands on productivity – it comes out more research.

Paul Romer attaches great importance to innovation based on the ability to solve problems by, among other things, new technologies. Where he sees big opportunities to curb global warming.

I agree with William Nordhaus (this year's second laureate) on the need for a global tax on emissions of carbon dioxide. But when such a tax is in place, I believe that many companies will take the opportunity to innovate. Where I am more optimistic than Nordhaus and many other economists, says Paul Romer.

to the climate and the environment, he claims. With improved technology, it can on the contrary make production more resource-efficient than in the past. Increased consumption will focus more on services and less on goods.

– But it requires political decisions which govern the in the direction. The companies mean much if they get guidance. I do not believe that market forces can handle this on your own.

There are different Paul Romer from a part of their ekonomkolleger, not least in the united states, which have greater faith in market rationality. His previous-repeated criticism that has attracted a lot of debate, but he clings to it:

– Many makroekonomer live too much in the mathematics and ekvationernas world and take out too little about reality.

Such has given Paul Romer opponent, but does not prevent he on Monday will receive the prize in economic sciences.