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.