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 graph shows two measures of a country's per capita energy consumption over time: 'domestic consumption' and 'trade-adjusted consumption'. The 'domestic consumption' line shows a significant decrease, while the 'trade-adjusted consumption' line, which accounts for the energy used to produce imported and exported goods, shows a much smaller decrease. Based on the principles of how these metrics are calculated, explain what this difference between the two trend lines implies about the country's international trade patterns and its overall energy footprint.

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