This figure presents data for Sweden from 1995 to 2019, illustrating a key example of decoupling. It charts the sustained growth of GDP per capita against the concurrent decline in per capita energy consumption. The chart includes two different metrics for energy use: one based on domestic consumption, and a trade-adjusted measure which subtracts the energy used to produce exports and adds the energy used to produce imported goods.

Figure 2.24: Changes in energy use and changes in GDP per capita in Sweden (1995–2019)

Sweden serves as a primary example that decoupling economic growth from environmental harm is achievable. Since 1995, the nation has successfully increased its GDP per capita while concurrently lowering its per capita energy consumption. This achievement is demonstrated using both domestic energy use figures and a trade-adjusted metric that accounts for energy embedded in imported and exported goods.

Sweden's Decoupling of GDP Growth from Energy Use

A line chart for a specific country from 1995 to 2019 shows that its economic output per person has steadily increased, while its energy consumption per person (both domestically and when adjusted for trade) has decreased. A policymaker triumphantly claims this is definitive proof that economic growth can continue indefinitely without any negative environmental consequences. Critically evaluate this policymaker's claim. In your answer, discuss the potential limitations of using only energy consumption and economic output data to draw such a broad conclusion about overall environmental sustainability.

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