China's total factor energy efficiency of provincial industrial sectors

• TFEE (Total-factor energy efficiency) at sector and provincial level is presented.
• Drivers behind the various changes of TFEE in China are illustrated.
• Most industrial sectors in Eastern provinces have higher TFEE than in other provinces.
• The energy intensive sectors have higher improvement in energy efficiency.
• After 2002, TFEE in most energy/pollution intensive sectors are improved significantly.

The index of TFEE (total-factor energy efficiency) is used to assess the level of energy consumption to produce economic output (GDP (gross domestic product)) based on multi factors input, which is superior to conventional energy efficiency evaluation regarded as a partial-factor energy efficiency index. The objective of this study is to provide the changes of TFEE at sector and provincial level and to illustrate the drivers behind such various changes in China. The results show that the TFEE of most industrial sectors in the eastern provinces is higher than that in other provinces. The most important finding is that the gap of TFEE across sectors was narrowed in the eastern provinces and expanded comparatively in the central and western provinces. Such result implies that the gap reduction of TFEE across sectors would be one of the important drivers behind the increase of overall TFEE. Meanwhile, the Tobit regression results indicate that technology progress, energy price and economic development have positive influence on TFEE. And the impact of technology progress is found to be of the most significance.