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2012 ANNUAL REPORT RESOURCES FOR THE FUTURE

The task of objectively and comprehensively assessing the relationship between natural resources and society is not done, and never will be. The commission recognized this fact and strongly recommended that the research that formed the basis for the commission’s report continue to be carried on cooperatively by government and private citizens. It was with this conviction that some of us decided to create a private, nonprofit organization to contribute to the research task. That organization became Resources for the Future. Since 1952, RFF has provided the United States with the knowledge it needed and still needs to meet the challenges ahead.

Resources for Freedom 35th Anniversary Edition Foreword by William S. Paley Former Chairman, President Truman’s Materials Policy Commission October 1, 1987

RFF’S REACH IN 2012 u RFF’s Academic Update reached more than 1,300 scholars, highlighting new research, job opportunities, and information for academic colleagues. u More than 2,100 Facebook and Twitter users followed RFF. u Since its launch in April 2012, more than 7,500 people visited Common Resources, RFF’s blog on current research and policy debates. u The RFF Connection, RFF’s monthly newsletter, went out to more than 11,000 people. u More than 14,600 subscribers read Resources, RFF’s flagship magazine, first published in 1959. u More than 700 people attended RFF’s First Wednesday Seminars in person and more than 1,200 watched via live webcast. u RFF experts produced 58 discussion papers, 13 issue briefs, and 6 reports—all of which are available at www.rff.org/publications.

RESOURCES FOR THE FUTURE

Contents

Celebrating RFF’s 60th Anniversary............................................. 2 About RFF................................................................................... 3 Focused on Environmental Economics........................................ 4 Committed to Research Excellence............................................. 6 Providing Independent Analysis.................................................. 8 Delivering Practical Solutions.................................................... 10 Board of Directors..................................................................... 11 Supporters................................................................................ 12 Financial Statements................................................................. 14 Experts and Staff....................................................................... 16

2012 ANNUAL REPORT

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Celebrating RFF’s 60th Anniversary Resources for the Future has always been committed to preparing decisionmakers around the world to meet the environmental and resource challenges of today and beyond. Such a tall order requires continuous objective research and rigorous analysis by our scholars—along with ongoing conversations with leaders across the public, private, and nonprofit sectors. It requires that we base our work on principles that remain fixed—research quality, integrity, and independence—even as we adapt to changing realities. In 2012, RFF celebrated its 60th anniversary, marking six decades of advancing environmental and natural resource policymaking worldwide. Our theme for this anniversary was Resources 2020, an exploration of how economic inquiry can address emerging and future environmental challenges. We had the privilege of welcoming three renowned Nobel Laureates in Economics to the RFF stage—Joseph Stiglitz, Kenneth Arrow, and Thomas Schelling—as part of a distinguished lecture series. Likewise, our 2012–2013 First Wednesday Seminar Series continues to provide an opportunity to engage firsthand on issues that lie at the intersection of resource scarcity, environmental risk, and economic growth. Throughout the year, RFF scholars have brought fresh perspectives to the table by proposing various policy approaches for addressing pressing natural resource and environmental challenges. u RFF’s Center for Energy Economics and Policy catalogued the plausible environmental risks associated with shale gas development, and its experts are examining state and federal regulatory approaches to managing these risks. u Experts in RFF’s Center for Climate and Electricity Policy explored the potential impacts of a federal carbon tax in the United States to help industry and government leaders understand the associated costs and benefits in light of current fiscal pressures. u Scholars in RFF’s Center for the Management of Ecological Wealth worked to identify opportunities to cost-effectively mitigate risks from floods and other catastrophic events by creatively employing “green” infrastructure, along with groundbreaking models to project future risks. Complementing these major initiatives, RFF scholars also made contributions in areas as diverse as the analysis of regulatory costs, the regulation of greenhouse gases under the Clean Air Act, estimates of the potential of “blue carbon,” the value of information collected by satellites from space, and approaches to valuing, managing, and funding state parks, among many others. As always, all this work would not be possible without RFF’s many generous supporters. We are incredibly grateful and look forward to what the next year may bring.

Phil Sharp, President Resources for the Future

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RESOURCES FOR THE FUTURE

About RFF For 60 years, Resources for the Future (RFF) has served as a steward of natural resources, providing objective economic research and policy analysis to help government, corporate, and nonprofit leaders make informed decisions about complex environmental challenges.

ROLE

CORE VALUES

EXPERTS

Today’s environmental policy decisions can have serious implications for economic growth, and economic decisions can profoundly impact the environment. RFF is a credible, independent voice that helps “cut through the noise” of current debates, providing decisionmakers in the public and private sectors with the ability to understand the present and prepare for the future.

With a focus on environmental economics, RFF is committed to utilizing research excellence and independent analysis to deliver practical solutions.

RFF brings together PhD economists and other leading experts focused on environmental, natural resource, and energy issues.

GOVERNANCE

RFF’s Board of Directors includes industry and environmental leaders, as well as former policymakers and preeminent scholars.

SUPPORT

As a 501(c)(3) organization, RFF is supported by individual and institutional donors who understand the role that rigorous, objective research plays in formulating sound public policies.

2012 ANNUAL REPORT

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Focused on Environmental Economics Founded in 1952, RFF pioneered the field of environmental and natural resource economics as the first research institution dedicated exclusively to these increasingly critical policy drivers. In 2012, RFF celebrated its 60th anniversary with the launch of Resources 2020, a yearlong exploration of how economic inquiry can address future environmental and natural resource challenges. At the center of the celebration was a distinguished lecture series featuring three Nobel Laureates in Economics, special First Wednesday Seminars, and a dialogue on Common Resources, RFF’s blog.

NOBEL LAUREATE LECTURE SERIES AT RFF October 5

2001 Nobel Laureate in Economic Sciences Joseph E. Stiglitz on “Inequality and Environmental Policy” “You can’t just rely on markets to have the right degree of conservation, the right use of our natural resources, or the right level of protection of our environment. And that of course raises the fundamental issue . . . what is the appropriate role of government and how best to achieve these societal goals? What is clear is that markets, by themselves, will not lead to the desirable level or policies of environment—and that’s something we all should remember. . . . The conversation has moved from being almost exclusively about improving extraction and energygenerating technologies to one that also considers regulating externalities, the well-being of society, and the reevaluation of our priorities. RFF has been a leader in this transformation of the discussion.”

RFF thanks the following sponsors for helping to make Resources 2020 a success: PATRON SPONSORS Peter R. Kagan Warburg Pincus ASSOCIATE SPONSORS

EQT Hunton & Williams LLP

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FRIENDS Covington & Burling LLP George Kaiser Family Foundation Lockheed Martin Corporation Frank & Dale Loy John W. and Jeanne M. Rowe Steven W. Percy Small Package Productions

RESOURCES FOR THE FUTURE

November 13

1972 Nobel Laureate in Economic Sciences Kenneth J. Arrow on “The Environment in the Anthropocene Era: Values, Rationality, and Justice” “The Anthropocene Era, the era in which man is dominant, it’s a new era. . . . What it signifies is the idea that one particular species has a dominant position in the world. It has power . . . with power comes responsibility . . . and there are two questions that are suggested by this. . . . One is why is it that we have this power? What is it about mankind that has done this? And the other is what are the responsibilities that we might reasonably consider? What I want to suggest is that these two questions are intimately linked.”

December 13

2005 Nobel Laureate in Economic Sciences Thomas C. Schelling on “Geoengineering: Time for Some Gentle Experimentation” “One important kind of geoengineering may be solar radiation management [SRM], screening out some of the incoming sunlight. . . . There are a lot of objections to any kind of geoengineering, including solar radiation management. . . . One of the strongest arguments is that if you think about SRM as the ultimate solution, we may not try so hard to reduce emissions. And I’m afraid that that is a valid argument. . . . If we begin SRM and kept it up for a long time, and didn’t do much about emissions, we will have accumulated the capacity for a very sudden, huge increase in temperature if we ever have to discontinue it.”

Visit www.rff.org/resources2020 to watch videos of RFF’s 60th Anniversary lectures.

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Committed to Research Excellence RFF experts reflect the largest team of economists working on environmental and natural resource issues anywhere in the world. They adhere to the highest standards of academic research, often creating wholly new research methodologies and pioneering new tools and techniques to solve real-world problems. Former senior government officials often serve as visiting scholars to enhance RFF’s understanding of the public policy process. RFF’s reach is global and supported by an extensive network of research partners around the world.

2012 RESEARCH HIGHLIGHTS Blue Carbon: Global Options for Reducing Emissions from the Degradation and Development of Coastal Ecosystems In this report, RFF and University of California, Davis, coauthors Juha Siikamäki, James Sanchirico, Sunny Jardine, David McLaughlin, and Daniel Morris present highresolution spatial estimates to explain where blue carbon ecosystems (such as mangroves and sea marshes) occur, how much carbon they store, and their economic potential for mitigating greenhouse gas emissions. The report expands on a study by Siikamäki, Sanchirico, and Jardine published in the Proceedings of the National Academy of Sciences.

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Prioritizing Policies for Biodiversity Conservation in Latin America and the Caribbean: A Rapid Assessment This report, prepared by RFF’s Allen Blackman, Rebecca Epanchin-Niell, Juha Siikamäki, and Daniel Velez-Lopez, was commissioned by the Inter-American Development Bank to provide input into its Biodiversity Platform, launched at the Rio+20 conference in June. It describes the main threats to biodiversity in Latin America and the Caribbean, assesses the effectiveness of existing conservation policies, and proposes five “lines of action” for the Inter-American Development Bank’s Biodiversity Platform.

RESOURCES FOR THE FUTURE

An article in Ecological Economics ranks RFF second among the “most influential” institutions in the field of environmental and ecological economics on the basis of a citation analysis of articles published during 2000 to 2009 in 14 journals.

The Supply Chain and Industrial Organization of Rare Earth Minerals: Implications for the US Wind Energy Sector In this report, RFF experts Jhih-Shyang Shih, Joshua Linn, Timothy J. Brennan, Joel Darmstadter, Molly K. Macauley, and Louis Preonas examine some of the key economic and physical factors influencing the markets for rare earth metals, focusing on how China’s market dominance may affect the US wind energy sector.

Analysis of the Bingaman Clean Energy Standard Proposal RFF’s Anthony Paul, Karen Palmer, and Matt Woerman describe the design features of the proposed clean energy standard, including how credits are allocated, how costs are managed, and which utilities are included. Palmer later testified before the US Senate Committee on Energy and Natural Resources on how the bill would affect electricity prices and carbon dioxide emissions.

Hurricane Sandy, Storm Surge, and the National Flood Insurance Program: A Primer on New York and New Jersey

US Status on Climate Change Mitigation Work by RFF Darius Gaskins Senior Fellow Dallas Burtraw and coauthor Matthew Woerman highlights that the United States is on course to achieve greenhouse gas emissions reductions of 16.3 percent from 2005 levels in 2020. The US State Department’s Special Envoy for Climate Change Todd Stern quoted this research in his discussions at the 18th session of the Conference of the Parties to the UNFCCC in Doha, Qatar.

Following the flooding caused by Hurricane Sandy, RFF Fellow Carolyn Kousky and Erwann Michel-Kerjan of the University of Pennsylvania examined how many of the affected homeowners in New Jersey and New York had federal flood insurance and whether the National Flood Insurance Program—which is already $17 billion in debt—would be able to pay for the damage.

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Providing Independent Analysis RFF is an independent, nonpartisan research organization focused on finding the most efficient and effective policy solutions. RFF experts openly provide the results of their work to all interested parties. As a result of this independence, RFF is known as a place of new ideas and brings together diverse groups of stakeholders to explore the latest thinking about environmental and natural resource issues through dozens of events each year. RFF’s First Wednesday Seminar Series is the longest-running public forum on environmental issues in Washington, DC. Held every first Wednesday of the month during the academic year, these seminars are free, open to the public, and broadcast live on the web. A sample of RFF’s 2012 First Wednesday Seminars is below.

The Future of Fuel: Toward the Next Decade of US Energy Policy “For the next 20 years, we’re going to be looking at competing or conflicting interests on the economic side, on the environment side, and in national security. . . . Sometimes the economy is top, sometimes security is top, and sometimes climate change is top, but you never get out of dealing with the tradeoffs.” Frank Verrastro from the Center for Strategic and International Studies on the future of oil and gas.

Whither Markets for Environmental Regulation of Air, Water, and Land? “You need to think about how it plays out in practice, and I don’t think we know enough. . . . I would hope that in the next decade we would find ourselves with much more robust data to work with.” Sally Katzen, Senior Advisor at the Podesta Group and RFF Board Member, on market-based versus command-and-control regimes for environmental regulation.

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RESOURCES FOR THE FUTURE

Invasive Species: Impacts, Challenges, and Strategies for Management “Typically the advantages of transoceanic shipping are pretty easy to quantify. . . . Quantifying the damages brought in their ballast water is much more difficult.” Roger Cooke, RFF Chauncey Starr Chair in Risk Analysis, with RFF

Fellow Becky Epanchin-Niell, on the challenges of assigning value to the impacts of invasive species.

Green Infrastructure: Using Natural Landscapes for Flood Mitigation and Water Quality Improvements “We’re evaluating a green infrastructure investment in [the East River] watershed, and in particular [asking] . . . If the land that is projected to be developed by 2025 is instead retained as green space, what would be the flood protection benefits and what are the costs?” Margaret Walls, RFF Research Director and Thomas J. Klutznick Senior Fellow, with Co-Director of RFF’s Center for the Management of Ecological Wealth Lynn Scarlett, on using open land to minimize flooding.

The Next Decade in Forest Health and Policy: A Role for Biotechnology? “What we’re talking about here is genetic modification. Should we use modern science to address modern problems? We’re not advocating that it should be the solution. We’re suggesting that society should look at it scientifically . . . look at it socially . . . and through a regulatory lens of, should this tool—if it’s possible—be added to the tool chest?” Carlton Owen, President of the US Endowment for Forestry and Communities, on methods for combating tree pests.

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Delivering Practical Solutions RFF provides a foundation for policymaking based on facts, analyzing issues that directly affect the well-being of current and future generations. Its location in Washington, DC, allows RFF experts to engage regularly with the White House, federal agencies, and Congress—and these decisionmakers frequently call upon RFF experts to help them develop and analyze solutions to complex environmental policy problems. In addition to an active portfolio of research on environmental and natural resource issues, RFF has three Centers of Excellence that focus on key areas. Some flagship initiatives currently underway in RFF’s centers include the following:

Considering a US Carbon Tax This year RFF’s Center for Climate and Electricity Policy launched an initiative to help leaders better understand the fiscal and environmental costs and benefits of a federal carbon tax. RFF experts met with policymakers across sectors to learn about the questions being asked, provide a place for open discussion, and share the results of RFF’s research, including analyses on carbon leakage, output-based subsidies, carbon markets, competitiveness, and distributional effects.

Managing the Risks of Shale Gas RFF’s Center for Energy Economics and Policy began releasing results from its signature initiative, Managing the Risks of Shale Gas: Identifying a Pathway toward Responsible Development. Experts developed a catalogue all of the plausible environmental risks—the Risk Matrix for Shale Gas Development—and a survey of existing state regulations, which shows regulatory patterns for more than 20 types of shale gas regulations in 31 states. Learn more at www.rff.org/shalegasrisks.

Exploring the Benefits of Green Infrastructure Experts in RFF’s Center for the Management of Ecological Wealth explored how “green” infrastructure can be a cost-effective substitute for the “gray” infrastructure—pipes, dams, levees, treatment plants, and so on—traditionally used to control flooding, purify and store water, and reduce urban stormwater runoff. They conducted a case study on flood abatement options in a Wisconsin watershed, helped implement a payment for environmental services program in the Florida Everglades, and are advising on minimizing storm impacts along the Texas Gulf Coast.

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RESOURCES FOR THE FUTURE

Board of Directors As of October 2012 LEADERSHIP W.

Bowman Cutter Chair Senior Fellow and Director, Economic Policy Initiative, The Roosevelt Institute

John M. Deutch Vice Chair Institute Professor, Massachusetts Institute of Technology Frank E. Loy Vice Chair Washington, DC Lawrence H. Linden Treasurer Founder and Trustee, Linden Trust for Conservation

Mohamed T. El-Ashry Senior Fellow, UN Foundation Linda J. Fisher Vice President and Chief Sustainability Officer, DuPont Environment and Sustainable Growth Center C. Boyden Gray Founder/Partner, Boyden Gray and Associates Deborah S. Hechinger Debbie Hechinger Consulting Rick Holley President and CEO, Plum Creek

Phil Sharp President Resources for the Future

Peter R. Kagan Managing Director, Warburg Pincus, LLC

MEMBERS

Sally Katzen Senior Advisor, Podesta Group

Vicky A. Bailey Principal/Partner, BHMM Energy Services LLC Anthony Bernhardt Northern California Director, Environmental Entrepreneurs Trudy Ann Cameron Raymond F. Mikesell Professor of Environmental and Resource Economics, University of Oregon Red Cavaney Senior Vice President, Government and Public Affairs, ConocoPhillips

RubĂŠn Kraiem Partner, Covington and Burling LLP Richard G. Newell Director, Duke University Energy Initiative; Professor, Nicholas School of the Environment, Duke University

Robert N. Stavins Albert Pratt Professor of Business and Government and Chairman of the Environment and Natural Resources Faculty Group, John F. Kennedy School of Government, Harvard University Lisa A. Stewart President and CEO, Sheridan Production Company, LLC Joseph Stiglitz Professor of Economics, Business and International Affairs, Columbia University School of Business Mark R. Tercek President and CEO, The Nature Conservancy

CHAIR EMERITI

Darius W. Gaskins, Jr. Partner, Norbridge, Inc. Robert E. Grady Managing Director, Cheyenne Capital Fund

Richard Schmalensee Howard W. Johnson Professor and Dean Emeritus, Sloan School of Management, Massachusetts Institute of Technology

2012 ANNUAL REPORT

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Supporters RFF thanks the following supporters for their generous contributions during 2012. INDIVIDUALS AND FAMILY FOUNDATIONS Chairman’s Circle $50,000 and above Gregory Alexander

Jan W. Mares

Richard B. Herzog

Robert E. Grady

Merck Family Fund

William Hildreth

Debbie Groberg

Steven W. Percy

The Inge Foundation

Winston Harrington

F. Noel Perry

Stephen D. Kahn

Donald M. Kerr

S.D. Bechtel, Jr. Foundation

Helen Raffel

The Jennifer and Tim Kingston Charitable Fund

Thomas J. Klutznick

William K. Reilly John W. and Jeanne M. Rowe

Kurt Layne Thomas E. Lovejoy

Steven W. Percy

Peter R. Kagan

Robert P. Rotella Foundation

Frank E. Loy

Lawrence H. Linden

Roger and Vicki Sant

Litterman Family Foundation

Philip R. Sharp

Richard G. Newell

Joseph Gleberman Mark Heising and Liz Simons

The G. Unger Vetlesen Foundation President’s Circle $25,000 and above Anthony Bernhardt Preston Chiaro W. Bowman Cutter C. Boyden Gray The Cynthia & George Mitchell Foundation Council $5,000 and above Christopher C. Aitken Garrett Albright Merribel Ayres Vicky A. Bailey Paul F. Balser David Blood John M. Deutch Mohammed T. El-Ashry John Evangelakos Linda J. Fisher Robert W. Fri Edward F. Hand George Kaiser Family Foundation

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Pamela Spofford Lisa Stewart Edward L. Strohbehn, Jr. Mark Tercek

George G. Montgomery Daniel H. Newlon Abby Newton Robert R. Nordhaus Edward L. Phillips Bernard J. Picchi

Richard Morgenstern Paul R. Portney William D. Ruckelshaus Clifford S. Russell Helen Marie Streich Edward L. Strohbehn, Jr. Victoria J. Tschinkel FRIENDS OF FIRST WEDNESDAYS Simon Fredrich

Associates $250 and above

Mark Pisano

Catherine G. Abbott

Paul and Chris Portney

H. Spencer Banzhaf

Thomas C. Schelling

Glenn C. Blomquist

Richard Schmalensee

Harold & Colene Brown Family Foundation

Schmitz-Fromherz Family Fund

Dallas Burtraw

Deborah J. Schumann

Barbara Bush

CORPORATIONS AND ASSOCIATIONS Chairman’s Circle $100,000 and above

Robert M. Stavins

Trudy Ann Cameron

Exelon

Joseph Stiglitz

John M. Campbell

ExxonMobil Corporation

John E. Tilton

Red Cavaney

General Electric

Victoria J. Tschinkel

Emery Castle

Goldman, Sachs & Co.

R. James Woolsey

United Technologies Corporation

Joel Darmstadter Christopher Elliman Lee H. Endress Richard L. Epstein Robert S. Epstein Margaret Fisher Dod Fraser Kathryn S. Fuller Kathryn Gabler

Sally Katzen

Ridgway M. Hall

Raymond J. Kopp

Steven C. Hamrick

Rubén Kraiem

Lea Harvey

Richard E. Kroon

Deborah S. Hechinger

William Pizer

LEGACY SOCIETY Catherine G. Abbott John F. Ahearne Paul F. Balser Emery N. Castle

Richard B. Herzog Madeleine Nawar Jack Person Rodney Weiher

President’s Circle $50,000 and above American Chemistry Council

Thomas D. Crocker

Biotechnology Industry Organization

J. Clarence Davies

Chevron Corporation

Margaret W. Fisher

Cummins Inc.

Maybelle Frashure

Duke Energy*

Kenneth D. Frederick

Electric Power Research Institute

Robert W. Fri Darius W. Gaskins, Jr.

RESOURCES FOR THE FUTURE

Green Diamond Resource Company

Southern Company Toyota Warburg Pincus* Council $25,000 and above

Associates Less than $25,000

The Gordon and Betty Moore Foundation

GOVERNMENT AGENCIES

American Forest and Paper Association

Rockefeller Family Fund

Bracewell & Giuliani LLP

Alfred P. Sloan Foundation

Government grant and contract support of RFF research is nonproprietary. RFF maintains the right to share the results of its work with the public.

American Gas Association

Consolidated Edison Company of New York

American Honda Motor Company

Edison Electric Institute

Anadarko Petroleum Corporation Aramco Services Company BP America Cenovus Energy CF Industries Chesapeake Energy Corporation ConocoPhillips* The Dow Chemical Company EQT* Hunton & Williams LLP

Koch Companies Public Sector, LLC Lockheed Martin Corporation

OTHER INSTITUTIONS

Cornell University

Mitsubishi Corporation National Alliance of Forest Owners

Deurstche Gesellschaft Für Internationale Zusammenarbeit

Plum Creek Timber Company, Inc.

Inter-American Development Bank

Rio Tinto

IVL, Swedish Environmental Research Institute, Ltd.

Stout & Teague

Vinson & Elkins LLP

Pacific Gas and Electric Company

Westport Innovations, Inc.

Weyerhaeuser

The Walton Family Foundation

Merrill Lynch & Co., Inc.*

Nuclear Energy Institute

Shell Oil Company

US Endowment for Forestry and Communities

Asian Development Bank

NRG Energy

Schlumberger Ltd.

Tinker Foundation

MeadWestvaco Corporation

Two Sigma Investments LLC

The Salt River Project

Skoll Global Threats Fund

FOUNDATIONS

Bipartisan Policy Center

Next 10 Statistics Norway US National Academy of Sciences University of Gothenburg

The Energy Foundation

Wageningen University

Fuel Freedom Foundation

The World Bank

Generation Foundation

World Health Organization

Robert Wood Johnson Foundation*

World Wildlife Fund—US

National Science Foundation US Army Corps of Engineers US Centers for Disease Control and Prevention US Department of Agriculture/Forest Service US Department of Defense US Department of Energy US Department of Health and Human Services US Department of Transportation (FTA) US Environmental Protection Agency US Geological Survey US National Aeronautics Space Administration US National Oceanic and Atmospheric Administration

*Matched their employees’ contributions to RFF.

HOW YOU CAN HELP

Every gift helps RFF advance rigorous, objective research that informs sound public policies. u Send your gift directly to RFF: 1616 P St. NW, Washington, DC 20036.

u Provide matching gifts through your employer’s matching gift program.

u Donate online through the secure Network for Good website, www.networkforgood.org.

u Give gifts of stocks, bonds, or mutual funds.

u Participate in the Combined Federal Campaign using RFF’s CFC code 19241.

u Consider planned gifts through bequests or deferred giving. Learn more at www.rff.org/support.

2012 ANNUAL REPORT

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Financial Statements Year Ending September 30th

Assets

2012

CURRENT ASSETS Cash and cash equivalents Grants and contract revenue receivable

$310,029

$404,102

543,997

1,223,518

1,259,301

516,628

77,149 43,304 $2,233,780

58,762 117,331 $2,320,341

$457,490

$430,781

Investments at fair value

20,473,766

19,021,473

Investment in Land, LLC Investment in RCC Total investments

8,900,000 4,689,894 $34,063,660

8,900,000 4,035,131 $31,956,604

Fixed assets - net of accumulated depreciation Assets held under charitable trust agreements Total Assets

6,019,189 334,003 $43,108,122

6,013,565 281,174 $41,002,465

2012

2011

Contributions receivable Other receivables Other assets Total current assets Contributions receivable, net of current portion INVESTMENTS

Liabilities and Net Assets CURRENT LIABILITIES

Tax-exempt bond financing, current portion

$250,000

$235,000

908,776

725,358

32,500

35,625

1,712,976

1,366,893

53,045 379,816 $3,337,113

59,166 7,379 $2,429,421

5,420,000 469,645

5,670,000 454,536

Liabilities under split-interest agreements Funds held for others Total Liabilities

221,052 83,603 $9,531,413

207,653 37,397 $8,799,007

NET ASSETS Unrestricted

24,798,050

24,167,037

2,855,752

2,113,514

5,922,907 $33,576,709 $43,108,122

5,922,907 $32,203,458 $41,002,465

Line of credit Grants and awards payable Accounts payable and accrued liabilities Postretirement benefits, current Deferred revenue Total current liabilities Tax-exempt bond financing, net of current portion Postretirement benefits, net of current

Temporarily restricted Permanently restricted Total net assets Total Liabilities and Net Assets

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2011

RESOURCES FOR THE FUTURE

Statement of Activities and Changes in Net Assets

2012

2011

$2,348,554

$1,183,544

Foundation grants

1,525,872

1,382,004

Corporate contributions

1,353,550

1,688,600

Government grants and contracts

2,512,294

2,254,525

Other institution grants

1,255,166

1,197,490

Rental income

3,168,343

3,092,653

187,317

182,551

35,177 $12,386,273

36,768 $11,018,135

8,488,544

9,207,308

188,594

157,125

-

57,208

1,140,249

1,080,326

102,405 $9,919,792

55,837 $10,557,804

959,775

854,405

1,622,396

1,609,238

Building operations and maintenance Total functional expenses

1,008,127 $13,510,090

1,040,472 $14,061,919

Change in unrestricted net assets from operations

($1,123,817)

($3,043,785)

2,497,068

(899,679)

$1,373,251

($3,943,463)

Net Assets at the Beginning of Year

$32,203,458

$36,146,922

Net Assets at Year End

$33,576,709

$32,203,459

REVENUE

Individual contributions

Investment income net of fees Other revenue Total operating revenue EXPENSES Research Academic Relations RFF Press Communications Other direct Total program expenses Fundraising Management and administration

NON-OPERATING REVENUES (EXPENSES) Realized and unrealized gains (losses) on investment transactions Increase (Decrease) in Unrestricted Net Assets

Revenue

In fiscal year 2012, RFF’s operating revenue was $12.4 million, 72.6 percent of which came from individual contributions, foundation grants, corporate contributions, and government grants. RFF augments its income by an annual withdrawal from its reserve fund to support operations. At the end of fiscal year 2012 the reserve fund was valued at $20 million.

Expenses

RFF research and educational programs continued to be vital in 2012, representing 73.4 percent of total expenses. Management and administration expenses combined with fundraising expenses were 12.0 percent of the total. The balance is related to facilities rented to other nonprofit organizations.

Management & Administration 12%

Other Revenue .3% Investment & Rental Income 27.1%

Building Operations 7.5% Fundraising 7.1%

Gifts & Grants 72.6%

Research Programs 73.4%

2012 ANNUAL REPORT

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Experts and Staff As of October 2012 EXECUTIVE LEADERSHIP Phil Sharp President

Edward F. Hand Vice President, Finance and Administration Lea Harvey Vice President, Development and Corporate Secretary Molly K. Macauley Vice President for Research and Senior Fellow Peter Nelson Director of Communications

RESEARCH

Joseph E. Aldy Nonresident Fellow Blair Beasley Research Assistant Allen Blackman Senior Fellow James W. Boyd Senior Fellow and Co-Director, CMEW Timothy J. Brennan Senior Fellow Anna Brittain Manager, CMEW Stephen P.A. Brown Nonresident Fellow Dallas Burtraw Darius Gaskins Senior Fellow Ziyan Chu Research Assistant Roger M. Cooke Chauncey Starr Senior Fellow Maureen L. Cropper Senior Fellow Joel Darmstadter Senior Fellow J. Clarence Davies Senior Fellow Rebecca Epanchin-Niell Fellow Carolyn Fischer Senior Fellow and Associate Director, CCEP

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Brian Flannery Visiting Scholar

Sheila M. Olmstead Fellow

Arthur G. Fraas Visiting Scholar

Karen L. Palmer Research Director, Senior Fellow, and Associate Director for Electricity, CCEP

Per Fredriksson Gilbert F. White Postdoctoral Fellow Robert Fri Visiting Scholar Hal Gordon Research Assistant Madeline Gottlieb Research Assistant Winston Harrington Senior Fellow Kristin Hayes Manager, CCEP and CEEP Mun Ho Visiting Scholar Shefali Khanna Research Assistant Raymond J. Kopp Senior Fellow and Director, CCEP Carolyn Kousky Fellow Alan J. Krupnick Senior Fellow and Director, CEEP Yusuke Kuwayama Fellow Joshua Linn Fellow Antung Anthony Liu Fellow Randall Lutter Visiting Scholar Jan Mares Senior Policy Advisor Virginia D. McConnell Senior Fellow Richard D. Morgenstern Senior Fellow Daniel F. Morris Center Fellow, CCEP Lucija Anna Muehlenbachs Fellow Clayton Munnings Research Assistant

RESOURCES FOR THE FUTURE

Ian W.H. Parry Senior Fellow Anthony Paul Center Fellow, CCEP Nigel Purvis Visiting Scholar Nathan Richardson Resident Scholar Anne Riddle Research Assistant Heather L. Ross Visiting Scholar Stephen W. Salant Nonresident Fellow James N. Sanchirico Nonresident Fellow P. Lynn Scarlett Visiting Scholar and Co-Director, CMEW Roger A. Sedjo Senior Fellow and Director, FEPP Leonard A. Shabman Resident Scholar Jhih-Shyang Shih Fellow Hilary Sigman Nonresident Fellow Juha Siikam채ki Associate Research Director and Fellow Kenneth A. Small Nonresident Fellow Elisheba Beia Spiller Postdoctoral Researcher Adam Stern Research Assistant Daniel Velez-Lopez Research Assistant Margaret A. Walls Research Director and Thomas J. Klutznick Senior Fellow

Yushuang Wang Research Assistant

William A. Pizer Duke University

Charlotte Pineda Senior Staff Assistant

Zhongmin Wang Fellow

Stephen Polasky University of Minnesota

Claudia Rios Staff Accountant

Roberton C. Williams, III Director of Academic Programs and Senior Fellow

Paul R. Portney University of Arizona

Tiffany Smith HR Staff Assistant

V. Kerry Smith Arizona State University

Priscilla Ugoji Accounting Manager

Brent L. Sohngen Ohio State University

Jhon Valdez Desktop Support Analyst

Robert N. Stavins Harvard University

Marilyn M. Voigt Executive Assistant to the President

Thomas Sterner University of Gothenburg

DEVELOPMENT

Matt Woerman Research Associate Michael Wolosin Visiting Scholar

UNIVERSITY FELLOWS John F. Ahearne Sigma Xi John M. Antle Oregon State University Jesse H. Ausubel The Rockefeller University

John E. Tilton Colorado School of Mines Jonathan B. Wiener Duke University

Angela Blake Development Assistant Barbara Bush Donor Relations Director

Gardner M. Brown, Jr. University of Washington

JunJie Wu Oregon State University

Key Hill Director of Foundation and Corporate Relations

Mark A. Cohen Vanderbilt University

FINANCE AND ADMINISTRATION

Amy Kersteen Development Officer

Partha Dasgupta University of Cambridge Robert T. Deacon University of California, Santa Barbara Hadi Dowlatabadi University of British Columbia Lawrence H. Goulder Stanford University W. Michael Hanemann University of California, Berkeley Charles D. Kolstad University of California, Santa Barbara Jon A. Krosnick Stanford University Simon Levin Princeton University John A. List University of Chicago Anup Malani University of Chicago Wallace E. Oates University of Maryland

Marilyn Alano Grants and Contracts Administrator

Mike Viola Development Associate

Julie Alleyne Research Division Manager

COMMUNICATIONS

Aris Awang Database Programmer/Analyst Danish Baig Desktop Support Analyst Jane Bergwin-Rand Grants and Contracts Administrator

Jeannine Ajello Digital Strategy Manager Sarah Aldy Editor, Resources Nicole Hardy Online Communications Associate

Michael Brewer Mailroom and Purchasing Assistant

Scott Hase Manager, Institutional Outreach and Events

Chris Clotworthy Librarian

Christine Tolentino Events Coordinator

Khadijah Hill Staff Assistant

Ellen Walter Graphic Designer and Production Associate

Nauman Memon IT Manager Mara Parrish Human Resources Manager Teri Paz Accounting Staff Assistant

2012 ANNUAL REPORT

Shannon Wulf Public Affairs Manager Adrienne Young Managing Editor

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Resources for the Future is an independent and nonpartisan organization that conducts economic research and analysis to inform decisions about critical environmental and natural resource challenges. Located in Washington, DC, RFF works with public, private, and nonprofit leaders to help them make informed decisions that benefit both the economy and environment.

1616 P St. NW Washington, DC 20036 www.rff.org

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Š 2013, Resources for the Future RESOURCES FOR THE FUTURE


Annual Report 2012