Abstract Countries' economies are facing challenges in revitalizing and redesigning their economic systems to enhance human development and environmental compatibility. By using the Method of Moments quantile technique, this study explores the heterogeneous impacts of renewable energy consumption, multifactor productivity and shadow economy on human development index (HDI) in Group of Seven countries from 1991 to 2018. In the panel quantile examination, results revealed that an increase in renewable energy consumption and multifactor productivity significantly contributes to HDI. In contrast, empirical results show that the shadow economy reduces HDI. Our analysis reveals a bidirectional causality observed between HDI and shadow economy and the unidirectional causality influence of HDI on renewable energy consumption and multifactor productivity. The research results provide some suggestions for policymakers on strengthening the role of renewable energy and multifactor productivity and reducing the underground economy's harmful effects on human development.
TRANG et al. (Thu,) studied this question.