Energy transition, carbon dioxide reduction and output growth in the Swedish pulp and paper industry: 1973-2006

► We find that the energy mix changed substantially in the wake of the oil price crises during the 1970s. ► Large price changes were needed to motivate the energy transformation and subsequent reductions of CO2 emissions. ► Energy prices represent an ultimate driver for the reduction of CO2 emissions. ► The energy transformation coincided with the environmental adaptation of the industry.