Research On The Relationship Between Energy Transformation And Economic Growth Based On Ramsey Model

With the seriousness of non-renewable and high-pollution and high-emissions of fossil energy,a new round of energy revolution is poised for growth.As the world’s largest energy consumer and carbon emitter,China has the responsibility and obligation to participate in it.At the same time,China entered a new normal period of the economy after 2014.Energy is an important industry related to economy,energy transformation is the key to achieving high-quality economic developmentThe modern economic growth theory represented by the Ramsey model often regards energy as an ordinary capital element.Distinguishing between energy factors and general capital factors,studying the relationship between energy transition and economic growth will help guide energy transformation in the new normal period of ChinaThis paper first summarizes the global energy transformation process and further understands energy transformation in the context of human social and economic development.Secondly,expand the Ramsey model and introduce energy elements into the model.For the consumers,build a new utility function and the consumption level is maximized by the dynamic optimization process.For the manufacturers,build a new production function and get the maximum profit of the manufacturer to zero.Thirdly,based on the production function in the Ramsey model,using the actual data from 1978 in China to carry out time-varying parameter analysis,empirical research on the dynamic relationship between energy transition and economic growth.Finally,The economic growth that relies on fossil energy deviates from the saddle point path,and the transition to renewable energy is more in line with economic growth demand,and gives targeted recommendations for energy transition in the new normal period of China’s economy.