Nobel Minds 2018

TL;DR

Innovation improves economic growth and quality of life, but society must steer it toward beneficial goals such as low-carbon energy. Climate policy can support long-term prosperity by comprehensively pricing carbon, introducing the price gradually, and recognizing health and environmental damages that conventional economic measures leave outside the market.

Transcript

hello I'm Xena but are we welcome to the concert hall in Stockholm where this year's Nobel Prize winners received their awards from the king of Sweden this is in recognition of their outstanding contributions to science and economics which have brought great benefits to humankind and this is the first time that they are appearing together in discus... Read More

Key Insights

• Innovation is an engine of economic growth and improved quality of life because discoveries can generate income while also delivering benefits that conventional income measures do not fully capture.
• Society is responsible for steering innovation because markets serve public purposes rather than independently determining which technologies should be developed or encouraged.
• Low-carbon and zero-carbon energy innovation is preferable to innovation that merely lowers the cost of extracting coal, according to Romer's example of socially directed technological progress.
• Science is a powerful system for producing discoveries and distributing them widely because governments can subsidize research and make its results openly available.
• Carbon pricing is an institutional invention that steers the economy by increasing the cost of carbon dioxide emissions and embedding that cost in fuels, products, electricity, and air travel.
• Gross domestic product is an incomplete measure of welfare because it leaves out nonmarket damages, including whether people are healthy, sick, or die early.
• Climate action can support sustainable long-term growth when economic assessments include damages from climate change and particulates produced by burning fuels.
• Politically workable carbon pricing is comprehensive, begins at a low level, rises gradually, and is supported by institutions that help people understand and accept the policy.

Questions & Answers

Q: How does innovation contribute to economic growth?

Innovation contributes to economic growth by creating discoveries and technologies that raise income and improve quality of life. Romer points to electric light, antibiotics, the transistor, and possible advances in cancer immunotherapy as examples of developments that can transform human well-being. Some benefits extend beyond income, so their full value may not appear in conventional economic measurements.

Q: Why are markets alone insufficient to guide innovation?

Markets alone are insufficient because not every cost-reducing invention serves society's interests. Romer contrasts cheaper coal extraction with innovation that reduces the cost of low-carbon or zero-carbon energy. His central argument is that the market works for society, so people and governments must choose incentives that steer research and technological development toward desirable outcomes.

Q: How can governments encourage useful scientific innovation?

Governments can encourage useful innovation by subsidizing scientific research and allowing its results to circulate widely. Romer contrasts this approach with intellectual property protections, while recognizing that both can influence discovery. He describes science as an effective system in which publicly supported research produces knowledge that can be shared and used beyond the original project or institution.

Q: What is carbon pricing and how does it work?

Carbon pricing raises the price associated with carbon dioxide emissions, which then increases the cost of fuels and of products or services that embody fuel use. Nordhaus explains that this signal can steer decisions throughout the economy, including choices involving electricity, air travel, and manufactured goods. The policy does not necessarily have to be structured specifically as a tax.

Q: Why does Nordhaus call carbon pricing an institutional invention?

Nordhaus calls carbon pricing an institutional invention because it creates a fiscal system that changes incentives across the economy. Unlike a physical gadget such as a ballpoint pen, it is a designed institution. By attaching a price to carbon emissions, the system encourages producers and consumers to account for environmental costs when making economic and technological choices.

Q: Can tackling climate change support long-term economic growth?

Tackling climate change can support sustainable long-term growth when economic analysis includes damages that ordinary market measures omit. Nordhaus argues that conventional output measures fail to capture climate damage, pollution from burning fuels, and important health effects. Reducing those harms can therefore produce higher income in a broader, more inclusive and comprehensive understanding of economic welfare.

Q: Why does gross domestic product mismeasure climate-related welfare?

Gross domestic product mismeasures climate-related welfare because it focuses on measured output while excluding damages outside the market. Nordhaus specifically notes that health, sickness, early death, and other consequences are not incorporated adequately. Once those effects and environmental damage are included, policies that reduce climate change and particulate pollution can appear economically beneficial rather than merely costly.

Q: How can carbon pricing be introduced without political shock?

Carbon pricing can be made more politically workable by applying it comprehensively instead of concentrating narrowly on gasoline or fuel. Nordhaus recommends beginning at a low level and increasing it gradually, rather than using shock therapy. He also stresses the need for institutions and public acceptance, so people understand that the policy forms part of a broader solution.

Summary

This video features a discussion with Nobel Prize winners in various fields, including physics, chemistry, medicine, and economics. The laureates share their experiences at the Nobel Prize ceremony and banquet, as well as highlight the importance of their research. They discuss topics such as the connection between innovation and economic growth, the role of government policies in tackling climate change, the potential uses of biological materials and antibodies in medicine, and the significance of basic science for future discoveries. The laureates also address issues of gender bias in science and their hopes for the future.

Questions & Answers

Q: What were some of the highlights for the Nobel laureates at the ceremony and banquet?

Several laureates mentioned different aspects of the awards ceremony and banquet as highlights. Professor Donna Strickland enjoyed sitting next to the King of Sweden at the banquet and having an enjoyable conversation. Professor Paul Romer highlights his discussions with Princess Crown Princess Victoria during the event. Professor Francis Arnold enjoyed conversations with various individuals, including her photographer and driver/bodyguard. Professor Jim Allison found it special to see his family's emotional reaction to receiving the award.

Q: What did Paul Romer discuss in relation to innovation and economic growth?

Paul Romer emphasized the significant impact of innovations on both the quality of life and economic growth. He mentioned examples such as the discovery of electricity, antibiotics, and cancer immunotherapy. While these innovations greatly enhance the quality of life, they also contribute to economic growth. However, Romer stressed the importance of steering the direction of innovation towards solutions that reduce carbon emissions and promote sustainability. He argued that markets alone are not sufficient to ensure the desired innovations and that government policies play a critical role in guiding innovation.

Q: How does William Nordhaus's research indicate the economic impacts of climate change and ways to slow its progress?

William Nordhaus developed tools that project the economic impacts of climate change. By considering the damages caused by climate change, including health impacts and the cost of using limited resources for adaptation, Nordhaus' research demonstrates the economic consequences of climate change. He also suggests that the most effective approach is to raise the price of carbon emissions to create incentives for reducing carbon-intensive activities. Nordhaus noted that this approach, often referred to as a carbon price or tax, can be implemented in various ways, as long as it raises the prices of carbon-emitting fuels and embedded products.

Q: What challenges do politicians face in implementing policies based on scientific research?

Implementing policies based on scientific research can be challenging for politicians due to various reasons. Professor Romer explains that politicians often adopt the right approach after exhausting all alternatives, referencing Churchill's quote about Americans. However, politicians face political considerations and the difficulty of making decisions that may not be immediately popular or politically expedient. The example of green fuel taxes in France, which faced resistance leading to protests, highlights the challenge of introducing policies that aim to impact consumption or change societal behavior. The panel suggests that encouraging dialogue, starting small, and gradually building up policies can be more effective than shock therapy approaches.

Q: How does Francis Arnold's work on enzymes contribute to the production of renewable fuels and pharmaceuticals?

Francis Arnold's work involves utilizing the power of evolution to develop new and improved enzymes. Enzymes are crucial catalysts in various chemical reactions, including the production of renewable fuels and pharmaceuticals. By improving the efficiency and specificity of enzymes, Arnold's work helps replace toxic chemical processes with sustainable and environmentally friendly alternatives. For example, her work has led to the development of renewable jet fuels made from plant materials or agricultural waste. The applications of her research also extend to the production of pharmaceuticals, where enzymes can improve efficiency and reduce toxic byproducts.

Q: How does George Smith's work on phages lead to the creation of new molecules and antibodies?

George Smith's work involved studying viruses called phages that infect bacteria. He utilized a technique called phage display, which allows for the evolution of viruses to generate new molecules with desirable properties. This technique enables researchers to select the few viruses with specific properties that can fulfill desired goals. His research has paved the way for the production of new antibodies, which are immune proteins that can target bacteria and viruses. The work of George Smith and Greg Winter, who used phage display to create antibodies, has been applied to combat autoimmune and inflammatory diseases, as well as some forms of cancer.

Q: How does Jim Allison's research contribute to cancer treatment?

Jim Allison's research involves understanding the function of T cells, a type of white blood cell responsible for recognizing and eliminating foreign entities in the body. His work focused on identifying a protein called ctla4, which acts as a brake on the immune system, limiting the ability of T cells to attack cancer cells. By blocking this brake, Allison discovered a way to unleash the body's immune system to target and destroy cancer cells. This breakthrough led to the development of immunotherapies that have shown promise in treating various types of cancer. Allison aims to continue advancing immunotherapy to improve the success rate in curing cancer and hopes that the Nobel Prize will inspire more patients to participate in clinical trials.

Q: How did the laureates' work in physics contribute to medical and industrial applications?

Donna Strickland and Gerard Mourou's work in physics led to the creation of high-intensity laser beams. This technique, known as chirped pulse amplification, has many applications, including corrective eye surgeries and industrial processes. By producing high-intensity laser beams, the technology revolutionized laser eye surgery, allowing for precise and safe procedures. Additionally, Arthur Ashkin's work with optical tweezers enabled researchers to manipulate tiny living cells using laser beams without causing harm. These optical tweezers are now used in various scientific studies involving microscopic life. The laureates' research has had significant impacts on medical and industrial fields.

Q: Are there any challenges for women in the sciences, especially regarding the Nobel Prize?

The discussion highlighted the challenges faced by women in science. Donna Strickland, one of the few female physicists to win the Nobel Prize, shared her experience of being told that science and math were "boys' subjects" by a high school teacher. Implicit bias against female scientists and a lack of encouragement or recognition for their work have contributed to the underrepresentation of women in Nobel Prizes. However, the panel expressed optimism about the future and the increasing presence of women in scientific fields. They emphasized the importance of diverse perspectives and the need to support and encourage women in science.

Q: What are the laureates' plans or goals for the future?

The laureates expressed a variety of plans and goals for the future. George Smith mentioned retirement and enjoying life without specific plans. Professor Nordhaus intends to continue his work on climate change and economic growth. Professor Romer expressed concerns about the impact of technology and its role in shaping institutions and democracy. Francis Arnold aims to continue her work on evolution, using machine learning and artificial intelligence to advance it further. Jim Allison's goal is to achieve a higher success rate in curing cancer through immunotherapy and to increase patient participation in clinical trials. Professor Ishinoqui plans to continue his scientific research. Donna Strickland looks forward to inspiring and educating others through her newfound platform and hopes for a more inclusive future in science.

Summary & Key Takeaways

• Paul Romer argues that discoveries such as electric light, antibiotics, the transistor, and cancer immunotherapy can transform living standards and increase economic growth. Markets can support innovation, but society remains responsible for its direction and can use scientific subsidies, openly shared research, and public policy to encourage broadly beneficial knowledge.

• William Nordhaus presents carbon pricing as an institutional invention that can steer economic decisions across the production chain. Raising the price of carbon dioxide emissions affects fuels and the goods and services containing their costs. He emphasizes that this mechanism does not necessarily have to take the specific form of a carbon tax.

• The discussion connects climate action with a broader definition of prosperity. Gross domestic product excludes some nonmarket damages, including effects on health and longevity. Nordhaus argues that reducing climate and particulate damage can increase income in a more inclusive sense, while gradual, comprehensive, and widely accepted policies can improve political feasibility.