Abstract: Purpose/Significance Industry, the pillar of China’s economy, is confronted with high energy consumption and serious pollutant release. Exploring the green development of industrial structure is of great significance to the green economic development in China. Design/Methodology This paper, based on the panel data of various regions in China between 2007 and 2015, puts forward a new method to partition China’s green industries. In addition, the green development of industrial structure of each region is calculated and the green economic efficiency is measured by the SBM model of undesired output. As a result, the influences of the green development of industrial structure on green economic efficiency are analyzed by mediating effect model. Findings/Conclusions The results show that most parts of China are inefficient, and the green economic efficiency in the eastern, central and western regions decreases progressively; the direct and indirect effects of the green development of industrial structure on green economic efficiency are significant; the green development of industrial structure, technological progress, urbanization level and foreign capital inflow, except environmental regulation, all have remarkable positive correlations with green economic efficiency.