A Sustainable Growth Model with the Utilization of Renewable-Energy

The relations among economic growth, energy exhaustion and greenhouse gas (GHG) emissions have become the major research topics. This paper proposed a solution of this triangle dilemma: developing renewable-energy and optimally investing in this new industry. With the conviction that the price of fossil products continues to maintain at the high level, a dynamically model of economic growth involves the fossil energy and the substitution of renewable-energy is developed. The impacts of the substitution on other elements in the economic system are investigated. Finally, assuming an anticipant substitution route is given, we obtain an optimal systemic project of investment in renewable energy industry based on the theory of cybernetics.