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.
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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
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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
14
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.
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Š 2013, Resources for the Future RESOURCES FOR THE FUTURE