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7. 2 Cumulative Pollutants and the Rate of Economic Growth 217 7. 3 Economic Growth in an Unregulated Economy 223 7. 4 Economic Growth in a Degrading Economy 231 7. 5 Economic Growth in the Spaceship Economy 237 7. 6 Dynamic Equilibrium in the Spaceship Economy 248 7. 7 An Evaluation of the Model and some Conclusions 254 7. 8 Some Long-Term Implications of the Model 256 References 258 Chapter 8: Optimal Economic Growth when CO Constraints are Critical 2 8. 1 Introduction 259 8. 2 Formulation of the Problem 260 8. 3 Derivation of the Necessary Conditions 264 8. 4 Analysis of the Necessary Conditions 265 8. 5 Conclusion 277 References 279 Chapter 9: Uncertainty. Value of Information and Greenhouse Gas Emissions 9. 1 Introduction 280 9. 2 An Illustrative Example - Evaluating a Climate Research and Monitoring Programme 282 293 9. 3 The Value of Information in a Stochastic Dynamic Programme 301 9. 4 Optimal Policies in a Stochastic Dynamic Programme 307 9. 5 Resource Costs and Critical Probabilities 9. 6 Conclusions 314 317 References 319 Epilogue 325 Index viii Preface The movement of carbon from sources to final disposition is known as the carbon cycle. The largest reservoir of carbon is in carbonate sediments such as limestone and chalk. Other significant but less stable reservoirs include fossil fuels, living and dead plants and animals, carbonates and bicarbonates dissolved in the ocean.