This　paper　investigates　the　impact　of　urbanization　on　provincial　energy　efficiency　in　China.　Using　panel　data　of　30　Chinese　provinces　between　2003　and　2014,　we　adopt　a　stochastic　frontier　model　to　estimate　energy　efficiency　in　China,　and　apply　a　series　of　spatial　panel　data　models　to　tackle　spatial　dependence　of　energy　efficiency　between　provinces.　Our　results　show　that　the　overall　impact　of　urbanization　on　energy　efficiency　is　negative　in　China.　These　results　are　established　after　controlling　for　spatial　correlation　and　other　confounding　factors,　and　are　also　robust　to　various　model　specifications.　We　also　document　that　the　impact　of　urbanization　on　provincial　energy　efficiency　manifests　through　both　a　direct　negative　impact　induced　by　the　focal　province＇s　urbanization　process,　and　an　indirect　positive　spillover　effect　caused　by　urbanization　in　adjacent　areas.　(C)　2018　Elsevier　Ltd.　All　rights　reserved.