Economic Growth and Multidimensional Environmental Performance in Developing Countries: An EKC Perspective on Energy Efficiency and Clean Energy Transition

Abstract

Economic growth in developing countries remains closely tied to fossil fuel dependence, generating persistent tension between development and environmental sustainability. This conceptual paper revisits the Environmental Kuznets Curve (EKC) framework to conceptualises how economic growth affects environmental performance, disaggregated into three dimensions of the Environmental Performance Index (EPI): Environmental Health (HLT), Ecosystem Vitality (ECO), and Climate Change Mitigation (PCC). Unlike literature treating environmental quality as a single composite measure, this paper conceptualises that growth's effects vary across these dimensions. It further theorises energy efficiency and clean energy transition as moderators capable of reshaping the EKC's trajectory and turning point. Synthesising energy economics and sustainability literature, the paper develops a conceptual model linking growth, energy efficiency, and clean energy transition to environmental performance, offering policy-relevant insights aligned with SDGs 7, 8, and 13 in developing economies.