This book focuses on the impact of energy policies on fossil fuel use, environmental quality, and economic growth in Mexico for the next 20 years. Part 1 examines the Mexican energy sector and its link to international trade, government revenues, economic welfare and environmental pollution. The scientific links between greenhouse gas emissions and climate change are presented. The effects of climate change on economic well-being in Mexico are examined. The role of Mexico and Latin America in current climate change negotiations is explained. Part 2 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. Conclusions for Mexico are placed in the context of the Americas. The effects of climate change policy are contrasted with that in Venezuela, Argentina, Brazil, and Chile. By employing an integrated US-Mexican model possible advantages of emissions trading between these two countries is examined.