This model is an endogenous growth model of two sectors (general finance and electricity finance), and the private production factors of manufacturers are represented by capital. The production of electricity comes from fossil energy and renewable energy. We find that the tax rate of fossil energy is not conducive to long-term economic growth, while subsidies for renewable energy contribute to long-term economic growth. The same result can be found in the long-term welfare level, but when the productivity of each energy is high enough, the opposite phenomenon may be obtained. The results of numerical analysis have found that taxation of fossil fuels has a positive impact on long-term welfare levels, and subsidies will have a negative impact