Collaboration between US think tank Resources for the Future (RFF) and Euro-Mediterranean Centre for Climate Change Foundation (CMCC) launched in Milan. To ensure sustainable development, to limit climate change and its impacts, to understand the social dimension of environmental economics. These are the innovative themes of the new Institute – key research topics addressed also by the Nobel Laureate in Economics William Nordhaus, whose lecture inaugurated the centre.

MILAN, 11 June 2019 – The name of the centre clearly represents the two institutions carrying out advanced activities respectively on environmental and natural resource economics, and climate change research – two high-profile international institutions that gave birth to RFF-CMCC – European Institute on Economics and the Environment. This is a unique reality which brings to Europe research activities focused on topics considered by many as the major challenge of the next decades: how to tackle climate change ensuring well-being and sustainable development for actual and future generations.

The relevance of these topics is confirmed also by the recognition of the Economics Nobel Prize to William Nordhaus, the economist who is on the frontline in stressing the nexus existing between economics and climate. Prof. Nordhaus indeed inaugurated the centre with a lecture on the need of a carbon tax and on useful mechanisms to make these measures beneficial for all citizens, regardless of their income.

“The scientific community agrees on scientific knowledge of climate change and its causes, but international agreements often lead to small results in term of abatement. We have learned to understand that the reason for this inefficiency is that they are voluntary agreements,” explained Prof. Nordhaus, specifying that if there are no sanctions, it is difficult for a commitment to reduce emissions to be carried out. Incentive mechanisms should be created to enhance the value of those who participate in the agreements and sanctions should be created for those who do not.

International and multi-disciplinary

The reduction of GHG emissions, the implementation of technologies that facilitate transition towards a carbon-free world, the nexus between climate change and migrations, the implications in the distribution of inequalities and techniques to promote and recognize citizens’ best behaviours: these are some of the research lines developed at RFF-CMCC – European Institute on Economics and the Environment through collaboration with top institutions worldwide.

Made up by roughly 50 researchers from 13 countries (Italy, Germany, France, Netherlands, Portugal, US, Bolivia, Bangladesh, India, Iran, South Corea, China, Belgium), the research team includes economists, climatologists, data and computer scientists, mathematicians, engineers.

To cut on CO2 without negative repercussions on the economy and taxes

Some examples of recent research, for example, include a study published on Nature Climate Change that opens the way to governments for the achievement of the Paris Agreement goals towards tackling climate change impacts with measures in line with the socio-economic priorities of each national entity.

Another study focused on the reasons why countries resulting today as the biggest CO2 emitters, are the same ones that will suffer the highest economic costs from climate change in the future.

All research results are the fruit of the advanced implementation of the most recent models of climatic projections, empirical estimates of economic damages linked to climate and socio-economic predictions.

The launch event

The new centre was inaugurated on Tuesday, 11 June in its headquarters in BASE Milano with a public event with the participation – in addition to Prof. William Nordhaus –  of Matteo Bartolomeo (President of Base Milano), Richard Newell (President RFF), Antonio Navarra (President CMCC), Massimo Tavoni (Director RFF-CMCC European Institute on Economics and Politecnico di Milano), Valentina Bosetti (Bocconi University).

The event closed with the round table titled Climate policies and strategies: what shall we do to accelerate action?, with Jos Delbeke (Director General Climate Action, European Commission), Ottmar Edenhofer (Director Potsdam Institute for Climate Impact Research and University of Berlin), Karina Litvack (Non-Executive Director Eni), Stefano Venier, (CEO Hera Group), Gianmario Verona (Rector Bocconi University), moderated by Carlo Carraro, Rector Emeritus Ca’ Foscari University Venice and Executive Council Chair of RFF-CMCC European Institute on Economics and the Environment.

“THE BEST ENVIRONMENTAL ECONOMISTS IN CONNECTION BETWEEN US AND EUROPE”

Richard Newell – RFF President and CEO

At Resources for the Future (RFF) we are greatly enthused by the potential of the RFF-CMCC European Institute for Economics and the Environment (EIEE) and the important research it will produce. With nearly seven decades of research and policy expertise, RFF has long considered the best ways to facilitate deeper global research collaboration, learn from one another internationally, and increase the impact of research on major environmental problems like climate change. This partnership with the Euro-Mediterranean Centre on Climate Change (CMCC) connects us in North America to Europe and beyond, bringing together some of the world’s leading environmental economists and climate scientists. Together we will develop new shared research and policy agendas through this pioneering transatlantic relationship, contributing to critical issues like climate change—global problems that demand a global response.

“THIS IS HOW WE STUDY THE PLANET OF THE NEXT DECADES”

Antonio Navarra – CMCC President

“The partnership between the Euro-Mediterranean Centre for Climate Change Foundation (CMCC) and Resources for the Future (RFF) is a significant innovation in the sciences of climate change. This is a field of research that needs to overcome barriers, it requires the sharing of skills, methods and expertise from different disciplines. The RFF-CMCC European Institute for Economics and the Environment (EIEE) is a bridge connecting two continents and two leading institutions. Through this collaboration, it will be possible to explore topics – such as the connections between economy, politics, sustainable development, technologies and environmental issues – which play a crucial role in the international debate and in shaping our future society. Climate change is a global problem, RFF and CMCC are working together to provide reliable, science-based analysis on how the Planet will be in the coming decades and what choices help us today to better define our common future”.

“MILAN, VANGUARD OF CLIMATE CHANGE RESEARCH”

Massimo Tavoni – Director of RFF-CMCC European Institute on Economics and the Environment

“The RFF-CMCC partnership has created what I think is the best research institute in Italy and one of the top in Europe on climate and environmental economics. With a team of climate and environmental scientists, economists, data and computer scientists, it can finally address questions which are of paramount importance and which so far have eluded clear answers. Whether we want to know the impact of climate change on global economic growth and inequality, or the investments strategies to achieve sustainable development, or how to engage citizens and customers in pro-environmental behavior, EIEE can provide solutions based on scientific evidence and robust methods. This initiative makes Milan one of the competence centers in climate change, reinforcing the partnership with top tier institutions such as Politecnico di Milano.

What is RFF-CMCC – European Institute on Economics and the Environment

What is Foundation CMCC – Euro-Mediterranean center on Climate Change

What is RFF – Resources for the Future