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

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)

Based on the principle that a country can successfully increase its economic output per person while simultaneously decreasing its energy use per person, propose two distinct policy measures a developing nation could implement to achieve a similar outcome. For each proposed policy, briefly explain the mechanism through which it would help separate economic growth from energy consumption.

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