Eco‐efficient services, or sustainable product–service systems, are a popular topic in discussions on sustainability and eco‐efficiency. In these discussions, ‘service’ actually refers to many different things. It may refer to the role of the service sector in the economy, or to a new business strategy, or to the service (utility) provided by a product. Furthermore, the discussion on eco‐efficient services has been linked to concepts such as the ‘new’, ‘experience’ or ‘customized’ economy. The article analyses the central arguments and evidence put forth in the discussion on eco‐efficient services. The findings address questions occupying policy‐makers, managers and researchers: how relevant are eco‐efficient services in environmental management, and what might be the next steps in exploring their potential? Copyright © 2003 John Wiley & Sons, Ltd and ERP Environment.