Jacobi cohomology, local geometry of moduli spaces, and Hitchin connections

The main aim of this paper is to develop general algebraic and cohomological tools for the study of the local geometry of moduli and parameter spaces in Algebraic Geometry, culminating in the so-called Hitchin (or KZ) (projective) connection over the Moduli of curves and the proof of its flatness. Among other things, we notably give a 'modular' (i.e. in terms of the modular problem) construction of the differential operators- of any order- acting on (general)modular vector bundles, and in particular for the Lie algebra of vector fields on a (general) Moduli space, with its natural action on functions. The methods involve mostly Lie algebras and their cohomology.