Abstract:This paper applies MalmquistLuenberger index which can take into account the reduction of “bad” output to measure environment TFP in 286 cities of China from 2003 to 2010. We also examine the dynamic change and influencing factors. The conclusions are as follows: The environment TFP, efficiency level and technical level improve at the annual rate of 1.1%, 0.5% and 0.9%; The environment TFP and technical level gap between cities is gradually widening, but the efficiency level gap between cities tends to be narrowed down; The average growth in environment TFP of the East is bigger than the West, and the Central too. The West shows a greater growth in its efficiency level than the Central and the East. Marketization further stabilize, the government scale expansion and the macro economy bring positive effect to the environment TFP growth of city. The growth in foreign direct investment is not conducive to the environment TFP improvement.