This paper reviews the evolution of energy use in Sweden since the ear
ly 1970s to shed light on the future, with emphasis on the role of ene
rgy efficiency. Between 1973 and 1989 improvements in end-use energy e
fficiency saved 8% of Sweden's primary energy use and 24% of Sweden's
delivered energy use. These savings were concentrated in the residenti
al and manufacturing sectors, with important savings also occurring in
air travel and the heating of commercial buildings. Despite these acc
omplishments, we found that Sweden was well behind Denmark, FRGermany,
Japan and the USA in energy savings during this period. At the beginn
ing of the 1990s Sweden exhibited one of the most energy intensive eco
nomic structures in the OECD. Sweden now faces many dilemmas that will
influence future energy use: the role of nuclear power, pricing and t
axation policies for fuels and electricity, the future of subsidies fo
r housing and travel, the role of Sweden's energy intensive exports, a
nd indeed the very lifestyle of the Swedes.