The present invention is a transgenic non-human animal whose genome contains a transgene containing a nucleic acid encoding a cyclin E protein operably linked to a regulatory element including a lung-specific promoter. The transgenic animals of the present invention have elevated levels cyclin E protein in the lung and have in increased occurrence of lung carcinogenesis. The animals of the instant invention were also found to have increased levels of Gli1 and Shh. Vectors, cells and cell lines are provided, as is a method for identifying a therapeutic agent for the chemoprevention or treatment of lung cancer.