As it is an important industrial base in China, it is of great significance to improve the industrial carbon emission efficiency in the western region to promote the low-carbon sustainable development of the region. This paper selects the input–output panel data of 11 provinces in western China from 2010 to 2021, and adopts the three-stage DEA model to measure the industrial carbon emission efficiency in western China under a non-traditional geographic division at the overall and regional levels and analyze its influencing factors. The Dagum Gini coefficient, its decomposition method, and the kernel density estimation method are used to analyze the regional differences and dynamic evolution process of industrial carbon emission efficiency in the western region. The results of the study show that (1) after removing environmental and random factors, the industrial carbon emission efficiency in western China has been improved, but there are inter-regional differences, characterized by “the third region > the second region > the first region”; (2) the levels of green development, shared development, innovative development, and coordinated development have a positive impact on the improvement of industrial carbon emission efficiency in western China, while the level of industrialization has a relatively smaller influence, and economic development, government support, open development level, and energy consumption structure have not yet played a significant role; (3) the spatial differences in the efficiency of industrial carbon emissions in western China have generally increased during the sample period, with inter-regional differences being the main source; and (4) the industrial carbon emission efficiency in western China is characterized by overall improvements in time and space but with stage differences and multi-polarization of regional differences. This study has a certain reference value for improving industrial carbon emission efficiency in western China.
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