Abstract: From the objective of "strive to reach the peak of carbon dioxide emissions by 2030, and strive to achieve carbon neutrality by 2060", the upgrading of energy industry is the institutional appeal not only, but also the behavioral necessity. Thus, this paper defines three concepts of the Comparative Advantage of Energy Industry, the Evolution of Energy Industry Advantage, as well as the MAO of Energy Industrial Upgrading, and builds an econometric model from both the regional and the national level by selecting relevant statistical data from 2009-2019. The empirical research is aimed at analyzing the "main influencing factors of industrial upgrading" and the "major influencing factors of pathway selection for industrial upgrading" during the transition period. The results show that: At the institutional level, although China''s energy industry has comparative advantages, there is still "inertia" in its development, making a progressive upgrading pathway accessible; At the organizational level, the regional energy industry as a whole is still in a non-ideal state of "Unsuccessful Upgrading" or "Maintaining Comparative Advantage"; At the product level, there are obvious regional differences in the energy substitution-complementary relationship, and the fossil energy industry has failed to meet the development expectations hence it still needs to continue to promote the transformation and upgrading.