Abstract: Following the two-way causality between energy consumption and economic growth, and based on the Solow growth model and the optimal theory, the conditions for balanced economic growth are studied. In addition, a balanced economic growth model with exogenous knowledge is established, including representative vendors, non-renewable energy production departments, renewable energy production departments, the government and representative families. The conclusions show that the condition for balancing energy consumption and economic growth is the growth rate of energy quantity per effective work equaling zero. Finally policy-related suggestions are proposed from the angles of intensifying energy saving and emission reduction as well as resource taxation.

Key words: energy constraint, renewable energy, energy saving and emission reduction, balanced growth