Determining sustainable development dynamics in E7 economies: impacts of green energy transition, environmental sustainability, institutional quality and human development

Sustainable development is a multidimensional construct that integrates governance, social, structural, economic, and environmental considerations. Understanding how these dimensions collectively shape sustainability outcomes is particularly important for E7 economies. Institutional quality influences the credibility and effectiveness of policy implementation. Renewable energy generation supports the decoupling of economic growth from carbon-intensive activities, whereas human development fosters innovation and adaptive capacity. In addition, the load capacity factor serves as an indicator of whether economic growth is achieved within ecological boundaries. This study examines the effects of institutional quality, renewable energy generation, human development, and load capacity factors on sustainable development in the E7 countries (Russia, India, Mexico, Türkiye, Brazil, Indonesia, and China) over the period 2000–2022. Also these independent variables, trade openness and urbanization were included in the model as control variables. Panel data methods were used in the analysis, and advanced econometric tests (CCEMG, AMG, and MMQR) were applied to determine both short-run and long-run relationships. The findings show that renewable energy generation has a positive effect on sustainable development in Indonesia and a negative effect in China. It also shows a positive effect across the panel. Human development has a positive effect on sustainable development in Brazil, China, Mexico, Russia, and across the panel. The load capacity factor negatively affects sustainable development in Türkiye. Urbanization has a positive effect on sustainable development in Brazil and a negative effect in India. Trade openness negatively affects sustainable development across the panel and in China. These findings demonstrate that sustainable development is closely related to energy generation structure, institutional efficiency, and human capital dynamics.