ABSTRACT
In recent years, the relationship between economic development and energy consumption has attracted much attention (Ozturk et al., 2010), and most of the studies argue that they have a close relationship. If one of them changes, the other will also change accordingly. Furthermore, other scholars bring an environmental variable into this binary system and construct an Economy-Energy-Environment (3E) system (Deng et al., 2006), and find that they interact with each other. Different from the previous researches, this paper divides energy into fossil energy and clean energy, and then takes clean energy as an environmental factor to build an Economy, Fossil Energy, and Clean Energy framework and investigate the dynamic relationship among them. A few scholars studied the relationship between fossil energy and clean energy. Li (2008) argues that there is an antisubstitution effect between fossil energy and clean energy based on the rent theory. However, contrary to Li, Yan et al. (2006) conclude that there is a substitution effect between coal and power, but other kinds of competitive energy do not show this substitution effect among them.
