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V.M. Veliov:
"Capital growth in an endogenously changing environment";
Keynote Lecture: Symposium ``Economic growth with natural resources", Laxenburg (invited); 2008-11-07 - 2008-11-08.

This study is motivated by the issue of global warming, which
is influenced by the economic activities and, on the other hand,
affects the efficiency of the economic activities.
We consider a global decision maker maximizing the social objective
based on an explicit model of the dynamics of the economy and that of the
environment. In addition, we define two different types of policies of the
economic agents which are based on exogenous predictions for the
environment: ``business as usual" and "free riding with a perfect foresight".
We define these policies in a formal and unified way
(modifying ideas from the so-called model predictive control
and receding horizon control)
and prove that under appropriate conditions
they exist. We compare the results obtained within the above
three scenarios for the evolution of the world economy
and the average temperature in the next 150 years.