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In the context of low-carbon development, effectively improving carbon emission efficiency is an inevitable requirement for achieving sustainable economic and social development. Based on panel data of 11 provinces and municipalities in the Yangtze River Basin (YRB), ranging from 2000 to 2019, this paper uses green-technology efficiency to measure industrial carbon emission efficiency via stochastic frontier analysis (SFA) incorporated with carbon productivity. This provides a comprehensive analytical framework for assessing the carbon emission efficiency, quantitatively measuring the reduction potential, and clarifying the incentive channels. The results are as follows: (1) The industrial carbon emission efficiency (ICEE) of YRB presents an increasing trend. Although differences in emission efficiency among provinces and municipalities are narrowing, their emission efficiency is still prominently imbalanced. (2) The potential for reducing industrial carbon emissions in this region shows an upward-to-downward trend. The decline in such potential of each province and municipality in recent years indicates that further reduction is becoming more difficult. (3) Effective means to improve ICEE are to improve the level of industrialization, promote technological innovation in industrial low-carbonization, and raise industrial productivity. Meanwhile, the significant spatial spillover effect of ICEE further emphasizes the necessity of strengthening the coordination of carbon reduction policies in YRB. The research in this paper adds a new perspective to the evaluation of ICEE and also provides reference and technical support for the government to enhance ICEE and formulate green and sustainable development policies.

Evaluation and Factor Analysis of Industrial Carbon Emission Efficiency Based on “Green-Technology Efficiency”—The Case of Yangtze River Basin, China