Do Business, Financial, and Trade Freedom, Human Capital, and Environmental Policy Stringency Contribute to the Renewable Energy Transition: Empirical Outcomes from E7 Countries

Renewable energy transition (RNET) is a key factor in improving environmental quality, sustainable economic growth, energy security, and public health, but its level varies markedly across countries. Hence, this study investigates the effect of business, financial, and trade freedom, human capital, and environmental policy stringency on RNET in the E7 economies from 2000 to 2020 using panel econometric tests. The panel causality test’s outcomes indicate that financial and trade freedom, human capital, and environmental policy stringency are Granger causes of the RNET, and there is a two-way Granger causality between business freedom and the RNET. Additionally, the cointegration coefficients indicate that the effects of business, financial, and trade freedom, human capital, and environmental policy stringency on the RNET change amongst the E7 countries.