Research On The Effect Of Technology Progress On Energy Efficiency Based On Spatial Heterogeneity

China is the world’s largest energy consuming country and China’s energy efficiency is not only related to the current energy supply, but also related to the long-term goal of sustainable development and relying on technology progress to improve energy efficiency is an effective way. This paper studies the effect of technology progress on energy efficiency from the perspective of spatial heterogeneity in order to provide some reference for the improvement of energy efficiency from various angles.First of all, this paper used the SBM (Slack-Based Measure) directional distance function as the based model, took China’s 30 provinces as the research object, established technology progress calculation model and energy efficiency calculation model based on total factor framework, and respectively, estimated technology progress and industrial total factor energy efficiency of each province in China during 2001-2012. The results showed that the technology progress of China had been improved as a whole, but the degree of technology progress was still low, technology progress mainly came from technology change, technology progress in different provinces existed significant differences and energy efficiency in our country was overall low and had a large room for improvement. Secondly, based on spatial heterogeneity of technology progress, technology progress spillover in different provinces was quantified using the Caniels model. Then we established a panel regression model to study the effect of technology progress and technology progress spillover on industrial total factor energy efficiency. The results showed that technology spillover was increasing year by year, technology progress had main function on industrial total factor energy efficiency improvement and efficiency change role in greater than technology change. Technology progress spillover has significant positive effect on energy efficiency. Third, based on the spatial heterogeneity of economic development level, a threshold regression model was established to study the effect of technology progress on total factor energy efficiency under different economic conditions. The results showed that the contribution of technology progress to energy efficiency was improved with the increase of economic conditions and the economic level of most provinces in China was in the middle of the threshold in 2012. Finally, according to the conclusions of this paper, we put forward policy recommendations on improving energy efficiency through technology progress.