Does new energy consumption conducive to controlling fossil energy consumption and carbon emissions?-Evidence from China

New energy consumption has attracted worldwide attention in recent years due to its great significance in alleviating energy poverty and protecting the environment. In this paper, by means of the measurement of energy efficiency, SUR (Seemingly unrelated regression) and scenario simulation methods are used to examine the impacts of new energy consumption on fossil energy consumption and carbon (CO2) emissions in China. The results show that the fossil energy efficiency is gradually improving, while the new energy efficiency tends to decrease. Although new energy consumption can inhibit fossil energy consumption and carbon emissions directly, its interaction with fossil energy efficiency has an indirect promoting effect on fossil energy consumption and carbon emissions. The direct inhibition of new energy consumption on fossil energy consumption and carbon emission are smaller than that of indirect promotion effect. Furthermore, scenario simulation shows that the promotion effect of new energy consumption on carbon emissions and fossil energy consumption in the short term will increase rapidly along with the increasing of new energy consumption, while the inhibit effect will be little fluctuation, and the net effect of new energy on carbon emissions and fossil energy consumption will be showing a promoting. Finally, we find that there is an obvious inverted U-shape relationship between new energy efficiency and fossil energy consumption, new energy efficiency and carbon emission. To reduce fossil energy consumption and carbon emissions, it is necessary to pay more attention to the improvement of new energy efficiency other than fossil energy efficiency. •The contribution of fossil energy to China's economic growth has been decreasing, while the contribution of new energy to economic growth has been increasing.•The efficiency of fossil energy has been rising, but the efficiency of new energy has been declining in recent years in China.•The interaction between new energy consumption and fossil energy efficiency will promote fossil energy consumption and carbon emissions.