Excessive　greenhouse　gas　emissions　pose　a　global　environmental　concern.　This　paper　examines　the　impact　of　energy　price　on　China＇s　CO2　emissions　based　on　an　extended　STIRPAT　(Stochastic　Impacts　by　Regression　on　Population,　Affluence　and　Technology)　structural　human　ecology　model.　We　utilize　Chinese　provincial　data　from　2002　to　2016　and　apply　the　spatial　panel　data　techniques　to　explicitly　consider　spatial　correlations　and　spillover　effects　between　observations.　Our　results　show　that　energy　price　has　a　significant　negative　impact　on　China＇s　CO2　emissions　after　controlling　for　other　economic　and　energy　market　factors　and　spatial　correlations　of　these　variables.　We　identify　a　significant　direct　impact　of　the　focal　province＇s　price　change　on　CO2　emissions　and　an　indirect　effect　exerted　by　energy　price　changes　in　adjacent　provinces.　Such　spatial　spillover　effects　are　also　observed　in　other　determinants　identified　in　the　extended　STIRPAT　model.　We　also　document　a　path　dependent　pattern　in　China＇s　provincial　CO2　emissions　with　last　period　CO2　emissions　influencing　the　current　CO2　emission　levels.　Our　results　show　that　the　negative　impact　of　energy　price　on　CO2　emissions　remains　qualitatively　the　same　after　incorporating　the　influence　of　previous　period　CO2　emissions.　Our　results　are　also　robust　to　the　inclusion　of　lagged　energy　price　measures,　alternative　spatial　economic　models,　and　alternative　spatial　weight　matrices.　Overall,　our　paper　highlights　the　role　of　energy　market　in　curbing　CO2　emissions　and　promoting　sustainable　economic　development.　©　2019　Elsevier　B.V.