While William Nordhaus is being recognised for his work on the damages caused by climate change, Paul Romer has examined how economists can achieve a healthy rate of economic growth.

“The models created by Nordhaus and Romer have helped the development of economic growth and with combating climate change. They have also taken macroeconomics to a global scale, to tackle some of the world’s biggest problems,” the Nobel Prize committee said.

Unlike the other Nobel prizes which were created in Swedish inventor and philanthropist Alfred Nobel’s last will and testament and first awarded in 1901, the economics prize was created by the Swedish central bank, the Riksbank,in 1968 to mark its tri-centenary. It was first awarded in 1969.

The Nobel, which also consists of a diploma and a gold medal, will be presented at a formal ceremony in Stockholm on December 10.