Scale-up of Distributed Zero-Carbon Energy and Reconstruction of Industrial Spatial Patterns—Discussion on the Applicability of Industrial Spatial Agglomeration Model in New Economic Geography

New economic geography explains spatial structural changes from the perspective of agglomeration and dispersion forces. Most new economic geography models focus on the relationship between the spatial distribution of industries and factors such as knowledge spillovers and environmental pollution. Considering the ongoing trend in the carbon-neutral era, where monopolistic fossil fuels are being replaced by decentralized, zero-carbon renewable energy sources, this shift will have corresponding effects on industrial spatial distribution patterns. Building on traditional new economic geography models, this study constructs a geographic economic model based on core and peripheral regions, encompassing three sectors: non-energy, fossil energy (including nuclear energy), and renewable energy. The model also takes into account three production factors: labor, capital, and energy, with the increase in the share of renewable energy consumption serving as an important dispersive force. The study finds that the relative shares of fossil and renewable energy consumption influence the long-term equilibrium utility level of capital return rate differentials between core and peripheral regions, ultimately weakening the influence of core regions. Through numerical simulations analyzing the impact of trade liberalization on the equilibrium distribution of industrial space, it is shown that increasing the use of zero-carbon renewable energy weakens the agglomeration force of core regions and strengthens the dispersive force of peripheral regions within the "core-periphery" structure of industrial spatial distribution. A renewable energy system driven by zero-carbon energy can transform the structure of industrial space and promote a shift from agglomerated economic growth to more balanced spatial development. It is evident that the development of renewable energy has a significant impact on the spatial distribution of industries, as it drives a shift in energy production from a monopolistic, centralized structure to a more distributed and decentralized form. This dynamic accelerates the revolution in zero-carbon energy production and consumption, hastening the transition away from fossil fuels.