Abstract: Environmental problems induced by excessive energy consumption caused widespread concern around the world. In this paper, based on econometric methods, two factors of technological progress and energy structure were chosen to analyze the long-term equilibrium relationship of energy efficiency to the two factors with the ADF unit root test and co-integration test, and then to probe into the dynamic impact of technological progress and energy structure on energy efficiency with pulse response function and variance decomposition analysis of VAR Model. The results show that: technological advance exerts a positive impact on energy efficiency, and energy structure has a negative impact on energy efficiency in the long term verified with Johansen co-integration test. With detailed portray of 15 phases of data using impulse response function and its response, the knock-on effect of technological progress on energy efficiency is relatively great, and the energy structure has a relatively small impact on energy efficiency. The results of the paper will provide reference for policy making on carbon emission reduction, energy saving and emission reduction and climate change in China. The measures of accelerating the pace of economic restructuring, striving to optimize and adjust the energy structure and gradually reducing the proportion of coal are not only in line with China's current industrial policy orientation, are also conducive to the promotion of energy consumption, thereby contributing to the optimization of China's energy consumption structure, the development of rational energy policies to improve efficiency of coal use, energy restructuring to clean, green, environment-friendly, healthy development. The government should promote investment in technological progress with new energy, new energy-saving technology policy to guide actively the enterprises in energy technology research and development and promotion to develop renewable energy, reduce the proportion of fossil energy consumption. At the same time, the government should develop the circular economy vigorously with the introduction of regulations and policies for a recycling economy based on the sustainable development concept.

Key words: technical progress, energy structure, energy efficiency, VAR model, inpulse response function, variance decomposition