Introducing renewable energy and industrial restructuring to reduce GHG emission: Application of a dynamic simulation model

• Renewable energy development is expanded and introduced into socioeconomic activities.
• A dynamic optimization simulation model is developed based on input–output approach.
• Regional economic, energy and environmental impacts are assessed dynamically.
• Industrial and energy structure is adjusted optimally for GHG emission reduction.

Specifying the renewable energy development as new energy industries to be newly introduced into current socioeconomic activities, this study develops a dynamic simulation model with input–output approach to make comprehensive assessment of the impacts on economic development, energy consumption and GHG emission under distinct levels of GHG emission constraints involving targeted GHG emission reduction policies (ERPs) and industrial restructuring. The model is applied to Jilin City to conduct 16 terms of dynamic simulation work with GRP as objective function subject to mass, value and energy balances aided by the extended input–output table with renewable energy industries introduced. Simulation results indicate that achievement of GHG emission reduction target is contributed by renewable energy industries, ERPs and industrial restructuring collectively, which reshape the terminal energy consumption structure with a larger proportion of renewable energy. Wind power, hydropower and biomass combustion power industries account for more in the power generation structure implying better industrial prospects. Mining, chemical, petroleum processing, non-metal, metal and thermal power industries are major targets for industrial restructuring. This method is crucial for understanding the role of renewable energy development in GHG mitigation efforts and other energy-related planning settings, allowing to explore the optimal level for relationships among all socioeconomic activities and facilitate to simultaneous pursuit of economic development, energy utilization and environmental preservation.