“…Since the first environmental CGE models appeared (Forsund and Storm, 1988;Dufournaud et al, 1988), the literature has included applications in many major areas, such as: (a) models used to evaluate the effects of trade policies or international trade agreements on the environment (Lucas et al, 1992;Grossman and Krueger, 1993;Madrid-Aris, 1998;Yang, 2001;Beghin et al, 2002) and for diverse applications in the area of the Global Trade Analysis Project (Hertel, 1997); (b) models to evaluate climate change, which are usually focused on the stabilization of CO2, NOx and SOx emissions (Bergman, 1991;Jorgenson and Wilcoxen, 1993;Edwards et al, 2001); (c) models focused on energy issues, which usually apply energy taxation or pricing to evaluate the impacts that changes in the price of energy can have on pollution or costs control (Pigott et al, 1992); (d) natural resource allocation or management models, whose objective is usually the efficient interregional or inter-sectoral allocation of multi-use natural resources-for example, allocation of water resources among agriculture, mining, industry, tourism, human consumption and ecological watersheds (Robinson and Gelhar, 1995;Ianchovichina et al, 2001); and (e) models focused on evaluating the economic impacts of environmental instruments, or of specific environmental regulations, such as the Clean Air Act in the USA (Jorgenson and Wilcoxen, 1990;Hazilla and Koop, 1990). …”