How the Energy Technology Influences the Total Factor of Energy Efficiency?: Evidence from China

Technological progress is of great importance to total-factor energy efficiency (TFEE). However, previous research has not narrowed technological progress into the energy field, generating rough and ambiguous empirical evidence for policymakers. In addition, technological progress is often discussed from a conventional perspective as a whole, ignoring its heterogeneity and spillover effect between regions. This study applies the stock of energy patents to reflect the effect of technological progress in the energy field on TFEE at first. The dynamic models are then employed to investigate if and how technological progress influences TFEE from the conventional and spatial perspectives for China’s over the period of 2000–2016. The conventional analysis shows that energy technology is of great importance to TFEE. However, the creation-type of technology coming from businesses specifically is shown to have more success in enhancing TFEE than other types of energy technology. Further evidence coming from the spatial econometrics demonstrates that technology spillovers across regions are rather common and have significant effects on TFEE.