The book focuses on the impact of energy policies on fossil fuel use, environmental quality, and economic growth in Mexico for the next 20 years. It examines the Mexican energy sector and its link to international trade, government revenues, economic welfare and environmental pollution.

It also develops a Computable General Equilibrium model of the Mexican economy, paying attention to the energy sector and its links with other aspects of the aggregate economy.

The past 25 years have witnessed an increasing worldwide concern over the issue of climate change and the specter of immense environmental and economic damage which would accompany unmitigated global warming trends. National governments in the industrialized world along with numerous multinational organizations have made a strong case for curbing the use of fossil fuels as an energy source, and agreements such as the Kyoto Protocol have come about largely due to their efforts. Many groups of researchers in both the natural and social sciences have made great strides in understanding this complicated issue. To date, however, the vast majority of climate change literature has addressed the topic from a European, North American, or global perspective, and the implications for developing countries have largely received only cursory treatment. This book represents a major step forward in addressing the issue of climate from the perspective of a country in the developing world. It highlights the climate change concerns for a particular developing country ? Mexico, and analyses the economic impacts of different policies designed to mitigate the use of fossil fuels in the context of economic development and growth. The effects of energy pricing policies, technological change, carbon sequestration, and tradable permits are all economically modeled and discussed at length by the authors. Of particular interest are the issues that these authors raise for policy makers, such as the tradeoffs between environmental concerns, economic growth, and income distribution.

New feature

The book focuses on the impact of future energy policies on fossil fuel use, environmental quality, and economic growth in Mexico over the next 20 years. The first part examines the growth of the Mexican energy sector and its link to international trade, government revenues, economic welfare, income distribution and environmental pollution. The scientific linkages between greenhouse gas emissions and climate change are presented with the economic theory behind various emission abatement strategies. The authors examine the harmful effects of climate change on economic well being in Mexico and explain the role of Mexico and Latin America in current climate change negotiations.

The second part develops a dynamic Computable General Equilibrium model of the Mexican economy, paying attention to the energy sector and its linkages with other aspects of the aggregate economy. Conclusions for Mexico are placed in the wider context of the Americas. The effects of climate change policy are contrasted with that in Venezuela, Argentina and Brazil. Finally, by employing an integrated US-Mexican model the authors look at possible advantages of emissions trading between these two countries.

This book could serve as a supplemental text in a number of different classes in environmental and resource economics, development, modelling, and negotiation of international treaties. Executives from the energy sector would also benefit in the United States, Mexico, and throughout Latin America.

Part 1 Chapter 1. Introduction 1. Structure of the Boook 2. Chapter Content 3. To the Users Chapter 2. Greenhouse Gas Emissions and Climate Change 1. The Chemistry of Climate Change in Brief 2. Economic Acivity and Climate Change 3. The Politics of Climate Change 4. Conclusions Chapter 3. Forecasting the Impact of Climate Change 1. Emissions from Latin America 2. Emissions and Economic Activity 3. Possible Effects on Mexico 4. Conclusions Chapter 4. Energy Use in Mexico 1. Introduction 2. Demography and Urbanization 3. Economic Growth and Structural Change 4. Brief over View of Energy Use 5. Energy Pricing and Fiscal Policy 6. Energy in Other Latin American Coutries 7. Conclusions Chapter 5. Economic Theory, Emission Control, and Kyoto 1. Environmental Control Mechanisms 2. The Economics of Climate Change 3. Climate Change and the Kyoto Protocol 4. Economic Instruments 5. Latin Americal and the Kyoto Protocol 6. Conclusions Appendix Part 2 Chapter 6. The Dynamic General Equilibrium Model 1. The Genera Equilibrium Famework 2. Recent Modeling Efforts 3. Overall Structure of the Present Model 4. Calibration and Data Appendix Chapter 7. Simulation Results under Perfect Competition 1. Features of the Model 2. Results 3. Conclusions Appendix Chapter 8. Simulation Results under Impact Competition 1. Introducing Imperfect Markets 2. Results 3. Conclusions Appendix Chapter 9. Emissions Trading: Intersectoral and International 1. Introduction 2. Background 3. Modeling Structure 4. Results 5. Conclusions Chapter 10. Conclusions References Index