Abstarct: Energy is considered as one of the most urgent and most vital requirements of economic and social development. The high demand for energy which is supplied from fossil fuels facilitates economic growth, but current energy system is not sustainable due to its negative effects on the environment and human life. Sustainable development has been defined as a development that will meet the needs of present generation without compromising the ability of future generations. The purpose of this study was to investigate the role of the government's economic policies in controlling the environmental pollution of power plants with a view to achieving sustainable development. The study period in this research is 1370-1394 and its simulation is considered until 1407. For this purpose, system dynamics and econometric method have been used. The dynamic system can display the most important economic-energy-environmental sub-systems seamlessly, depicting the path of variables over time. The simulation results indicate that all three examined policy instruments (subsidies for new energy sources, rising fossil fuels prices and reducing the cost of new energies) were effective on increasing the production capacity of new energies and decreasing production capacity of fossil energies, and among these, the policy of reducing costs for developing of new energies has had the greatest impact. There is also a direct relationship between the production capacity of new energies and sustainable development and reverse relationship between the production capacity of new energies and greenhouse gas emissions.