Organizational Background Our mission at the Environmental Markets Lab (emLab) at UCSB is to advance economic research to deliver practical solutions for people and the planet. Through an attitude of “ambitious possibility,” our team embraces complexity and works across boundaries—connecting science with policy, data with decisions, and ambition with action—to create pathways toward a future where environmental and human well being mutually reinforce one another. Since our inception, we've consistently produced impactful, solutions-oriented research that informs policy and drives real-world change. Our team, led by Dr. Christopher Costello and Michaela Clemence, collaborates with a diverse network of faculty, students, and external partners to bridge the gap between academic research and practical applications. External partnerships are the cornerstone of emLab’s work. emLab’s unique, partner-based research model provides our team the opportunity to conduct collaborative research with broad applications. Most of our work is developed directly with external collaborators and implementing partners, facilitating the science to solutions pathway and resulting in real-world impacts. While our core expertise lies in environmental economics, we actively seek out and integrate insights from various disciplines to ensure our research is both comprehensive and actionable. At emLab, we don’t just help economic ideas become environmental solutions; we are committed to building a vibrant community that helps equip the next generation of environmental professionals with the analytical tools and practical experience they need to tackle the world’s most pressing issues. Through our strong partnership with the Bren School of Environmental Science and Management, we’re able to offer a range of exceptional research and professional development opportunities to UCSB’s graduate and undergraduate students. Context and Rationale The unprecedented problems we currently face require new, creative, and multidisciplinary solutions. emLab’s Climate & Energy program uses big data and cutting-edge empirical techniques to inform scientific contributions. With a focus on research to inform policy engagement and market-based interventions, emLab is agile and able to respond to timely research needs, identify research gaps, and develop forward-thinking solutions. Our researchers are continually pushing the envelope by working to uncover new solutions to current and future challenges in an ever-evolving, complex world. In May, our team published a report on cap-and-trade and energy affordability, demonstrating how California’s cap-and-trade revenue could be leveraged to reduce retail electricity prices. Just three weeks later, this research played a key role in the passage of AB 745–a bill that directly cites emLab’s analysis. The bill passed unanimously, first in the Energy Utilities Committee and then again in the California Assembly. This is a clear example of how emLab’s Climate & Energy program translates research into meaningful policy action. To continue building on this momentum and meeting emerging challenges, sustained flexible support is essential. It enables us to scale our impact, respond to urgent research needs, and shape effective, data-driven climate solutions. Specific Request We are seeking $100,000 in programmatic funding to bolster emLab’s Climate & Energy program, with a focus on accelerating timely, policy-relevant research and strategic communications. This support will enhance our ability to rapidly analyze emerging climate and energy issues, deliver actionable insights to policymakers and stakeholders, and respond to evolving policy windows with clear, data-driven guidance. Anticipated outcomes: This funding will strengthen emLab’s Climate & Energy program by supporting two key areas of impact: 1. Strengthen strategic direction and research capacity: This funding will play a critical role in enabling emLab to strategically advance the impact of its Climate & Energy program. As we expand our research team—including hiring additional graduate student researchers and a full-time climate economics analyst—this funding will support the operational infrastructure needed to coordinate, integrate, and fully leverage this new capacity. It will enable emLab’s leadership to scope new projects, strengthen strategic partnerships, and respond to emerging research and policy needs with agility and rigor. Ultimately, this funding will enable emLab to continue to expand its Climate & Energy program by developing timely, policy-relevant research and pursuing high-impact initiatives while maintaining the unique adaptive capacity that defines our approach. 2. Developing rapid, policy-ready analyses and communication materials: This funding will enable emLab to quickly produce rigorous, data-driven analyses that respond to the evolving needs of policymakers. Our team will apply empirical methods and economic modeling to assess key policy trade-offs, with a focus on equity outcomes. These insights will be translated into accessible formats—such as policy briefs, memos, and graphics—to ensure decision-makers have timely, actionable evidence to guide their actions. Geographic Area Served: emLab approaches climate change and energy transitions with a global perspective, recognizing that the climate crisis knows no borders. However, much of our Climate & Energy program focuses on domestic projects at the national and state level. While each project funded will vary in geographic scope, our ultimate goal is to develop regionally relevant solutions that also contribute to global environmental and social well-being.