The price people pay for low energy efficiency includes not only high manufacturing costs, but also public health. With technological innovation as the driving factor for improving energy efficiency, this study uses two-stage dynamic undesirable data envelopment analysis (TDU-DEA) under variable return to scale to evaluate energy and health efficiencies with inclusion of technological innovation in 30 provinces of China over the period 2013-2016. The results show that the mean overall efficiencies and ranks in the eastern region are significantly higher than those in the non-eastern region, with or without the inclusion of technological innovations, and that energy efficiency in most provinces is higher than health efficiency. The average technological innovation efficiencies for energy conservation are higher than those for respiratory medical treatment. The former gap between the eastern region and non-east region is also smaller than the latter. Lastly, regions with the best technological innovation efficiencies are Beijing, Shanghai, Guangdong, Fujian, Hainan, Hebei, Inner Mongolia, Ningxia, Qinghai, Shandong, Shanxi, Tianjin, Xinjiang, and Yunnan.
Keywords: SMB VRS two-stage DEA; energy efficiency; health efficiency; technological innovation.