Research on the Impact of New and Renewable Energy Replacing Fossil Energy Resource under Constraint of Carbon Emissions

For studying new and renewable energy as a substitute for fossil energy in primary energy consumption and its impact on carbon emissions to cope with economic uncertainties, a multi-sector DSGE model was employed to simulate the dynamic impact on carbon emissions and macroeconomic development. The structural adjustment of energy consumption and the carbon emissions mitigation policy were considered in the model. The simulation results showed that using new and renewable energy instead of fossil energy is an optimal choice for the firms to comply with the regulations of carbon emission mitigation policy. Structural adjustment of energy consumption is the best route to achieve the dual goal of economic development and carbon emission reduction. Unexpected sharp fall in free carbon quota has a negative impact on the economy.