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Based on stochastic frontier analysis and translog input distance function, this paper examines the total factor energy efficiency of China’s industry using input-output data of 30 sub-industries from 2002 to 2014, and decomposes the changes in estimated total factor energy efficiency into the effects of technical change, technical efficiency change, scale efficiency change and input-mix effect. The results show that during this period the total factor energy efficiency in China’s industry grew annually at a rate of 3.63%; technical change, technical efficiency change and input-mix effect contributed positively to the change in total factor energy efficiency; while scale efficiency change contributed negatively to it.

Total Factor Energy Efficiency of China’s Industrial Sector: A Stochastic Frontier Analysis