The aim of this research paper is to investigate factors and mechanisms that may facilitate the transition from coal resource-based economy to sustainability. Based on the energy technology innovation theory, factors that may influence the transition of coal resource-based economy were categorized into four types, including: innovation policy, innovation input, innovation ability, and innovation organization. Hypotheses were proposed regarding the mechanisms of these factors. Data were collected from surveys administered to 314 Chinese energy firms, and a structural equation model (SEM) was employed to test the hypotheses. Ten of fifteen hypotheses were retained based on the reliability tests, validity tests, and SEM. The results show that the four proposed factors are crucial in transforming the coal resource-based economy, and the effects become statistically significant through three intermediate variables, namely, transition of energy consumption structure, correction of resource wealth investment, and improvement of transition environment. (C) 2016 Elsevier Ltd. All rights reserved.