Energy efficiency improvement is an eternal topic in the limited energy sources world. This paper analyzes the relationship between energy efficiency and energy price by using the panel data from ten economic giant. The results show that increasing energy price can promote energy efficiency improvement. If the energy price increases 10%, the energy intensity per unit of GDP could reduce 1%. Compared with other economic giant, the energy price of China is obvious low which is the main reason of China's low energy efficiency.

This study presents the dynamic influences and changes of economic development on which the electricity price policy impact through theoretical model in China. The results show that from the static point of view, low electricity price level seems to be good for economic benefits. However, from a long-term and dynamic point of view, low electricity prices and economic development is not only having no obvious positive correlation, but instead a significant negative correlation.