Abstract: This paper reviews the mechanism of energy exploitation, human capital on total factor energy efficiency, using Undesirable-SBM model to estimate total factor energy efficiency containing undesirable output, using the provincial panel data of mainland China over the period of 1998—2011, employing the panel Tobit model to test the effect of energy exploitation, human capital on total factor energy efficiency. The results show that:(1)The relative strength and absolute strength of energy exploitation have a different impact on total factor energy efficiency, and at the national level and regional level there are differences that cannot be ignored.(2)Human Capital fails to bring significant improvement in total factor energy efficiency.(3)The effect of structural variables and open economic variables on total factor energy efficiency varies, while energy saving and emission reduction policy for the promotion of total factor energy efficiency has worked. Under the constraint of energy saving and carbon emission reduction, we should extend the chain of resource economics and adhere to the use-oriented strategy of human capital development.