Abstract: Abstract： Many variables are applied to measure the technological progress; among them are research and development input，FDI, human capital, and technology spillover of foreign countries. Then the coordinating analysis and Granger causality analysis are made on the technical progress and energy efficiency, and futhermore a generalized difference regression model is established. The results from empirical analysis show that long-run equilibrium relationship in some degree exists between these four variables and energy efficiency. Moreover, the R&D input, FDI, and energy efficiency form a relation of one-way causation. Therefore, it will have a long-term effect on the improvement for China’s energy efficiency by means of increasing investment in science and technology, speeding up the absorption and utilization of FDI.

Key words: technical progress, energy efficiency, coordinating analysis, Granger causality test