Resources and the environment have always been the two important natural factors that affect people’s lives. In recent years, the problem of resources and the environment has increasingly become an important issue that people are concerned about. This study discusses the use and consumption of energy and the impact of environmental pollution on economic development under sustainable economic development. This paper takes Panzhihua as an example to analyze the impact of energy and environment on the economy, and proposes solutions to improve economic development, which is of strategic significance for the future development of Panzhihua City. In this paper, the system dynamics method is used to decompose the Panzhihua large-scale system into three parts and carry out modeling and simulation to explore the connection between them. Based on the data from 2007 to 2015 in Panzhihua City, simulations have been carried out to obtain qualitative and quantitative analysis of certain simulation curves of the energy-environment-economy 3E system (hereinafter referred to as 3E system) from 2007 to 2030 to ascertain the future development pattern of Panzhihua City. The results show that when the 3E system is a coordinated development model, economic development and environmental protection have a good development trend at the same time, which is applicable to the future development of Panzhihua City. This model has good reference suggestions and application prospects for urban development. We want to give Panzhihua City the following suggestions: (1) Continue to focus on the secondary industry and increase competitiveness. (2) Increase the investment funds in environmental protection and achieve sustainable economic development.