For a neutralist country like Sweden, maintaining a secure energy supply is very important. Both the geographic localization and the structure of industry must in some way depend on the distribution and availability of energy. The Swedish policy of striving toward a more equal distribution of income and wealth also depends on the maintenance of an adequate energy supply. Safeguarding the environment and human health is also a factor in energy production. With regard to the potential for reducing energy consumption, several methods for regulating use are mentioned. Studies are needed on the price elasticity of energy as a basis for eventual taxation or increased prices. Several noneconomic regulators, such as standards and laws, institutional factors, and environmental restrictions, will probably be used in the future. Government permits to establish new industries are granted only after consideration of factors such as capital, employment, and export/import balance. In 1977 the energy efficiency of new industries became an additional factor in the issuance of permits. Still other possibilities for regulating energy consumption are rationing or restrictions. Before such measures are introduced, however, it is essential to measure their effects, secondary as well as primary. There is a growing body of analysis ofmore » the earth's energy resources to the end of this century and beyond. These must of necessity form the basis for judgment in Sweden of what possibilities are open to our country to go on consuming and producing energy. In the review, sections are devoted to: energy supply; energy storage; energy and the environment; shaping a national energy policy; the energy conservation program; and research and development. 18 tables, 7 figures, 46 references.« less