Chinese government pledged to cut its CO_2 emissions per unit of GDP by 60% to 65% from 2005 levels by 2030. Administrative emission reduction measures based on carbon intensity restriction are one of China's major means of coping with climate change. Analyzing the impact of carbon intensity restriction on urban and rural residents'welfare is a significant content of the carbon emission reduction mechanism design. This paper builds a dynamic CGE model of economy-energy-carbon emission based on 31 sectors to simulate changes in urban and rural residents'welfare and consumption structure as well as CO_2 emission under the context of carbon intensity restriction and increased share of non-fossil energy from 2012 to 2030. Results are listed as follows: ① There's no obvious change in urban and rural residents'income and the general living consumption slightly drops. The decrease of rural residents'living consumption is greater than that of urban residents. ② Residents'energy consumption and CO_2 emission experience a dramatic fall with greater decrease on the part of rural residents. ③ A sharp decline is shown in the consumption of coal,refined oil and natural gas; an obvious increase can be witnessed in electric power consumption and the consumption of some capital-intensive sectors goes through a minor increase. The coal consumption of urban and rural residents are significantly increased. The decline in consumption of refined oil and natural gas of rural residents far exceeds that of urban residents. Besides,their increase in consumption of electric power, special purpose machinery,general purpose machinery and metal products surpasses that of urban residents. ④ Carbon intensity restriction brings about a slight drop in urban and rural residents'welfare but it's a small range. The fall in the Hicks'equivalent variation is greater than that of urban residents. The following conclusions are reached according to the empirical results: first,carbon intensity restriction plays a positive role in household carbon emission reduction; second,the policy makes urban and rural residents' welfare decline but it won't have strong impact on residents'life; third,rural residents receive greater adverse influences on energy consumption than urban residents do. Generally speaking,the government should properly increase the transfer payment for rural residents on the basis of carbon intensity restriction,and increase the income of rural residents to narrow the income gap between urban and rural residents. Besides,the government should provide more clean energy for the rural area,and increase subsidies for rural residents using clean energy,thus reducing negative influences of the climate change policy over rural residents.