How to improve total factor energy efficiency under climate change: does export sophistication matter?

Climate change has a profound impact on human survival and development. Climate change is an energy and economic issue, which should be driven by technology. Total factor energy efficiency (TFEE) improvement is undoubtedly a breakthrough in solving energy problems. In this paper, the fixed effect model, impulse response function, and threshold regression model are used to test the complex relationship between export sophistication and TFEE. The results reveal that export sophistication improvement leads to higher TFEE. The impulse response results verify the existence of a phased and positive correlation between export sophistication and TFEE. Finally, the relationship between export sophistication and TFEE significantly varied across different threshold levels of regional corruption score, economic development, and openness. This article led the foundation for supporting China’s export sophistication promotion strategy and also provides a reference for energy efficiency improvement and energy crisis response in the post-pandemic era.