Energy diversification and sustainable economy growth

Energy diversification is very important to the sustainable economy growth. In this paper we develop an endogenous growth model and analyze some major relationship between the energy diversification and sustainable economy growth. The dynamic optimization results of the model show that the technology progress will make great contributions to the energy diversification and the specialized energy R&D plays an important role in the energy diversification process, which can accelerates energy supply source expansion. Propelled by the specialized energy R&D, energy diversification will redistribute the labor force among different sectors, offset the adverse effects of diminishing marginal return of factors, and help economy step into sustainable growth e entually.