The impact of economic freedom, human capital, and low-carbon energy on environmental sustainability in the E7 countries

Aydin M., Degirmenci T., Cakmak B. Y., Yigit B.

Energy Sources, Part B: Economics, Planning and Policy, vol.20, no.1, 2025 (SCI-Expanded, Scopus)

  • Publication Type: Article / Article
  • Volume: 20 Issue: 1
  • Publication Date: 2025
  • Doi Number: 10.1080/15567249.2025.2517903
  • Journal Name: Energy Sources, Part B: Economics, Planning and Policy
  • Journal Indexes: Science Citation Index Expanded (SCI-EXPANDED), Scopus, Academic Search Premier, Aerospace Database, Applied Science & Technology Source, CAB Abstracts, Communication Abstracts, Compendex, Computer & Applied Sciences, Environment Index, Greenfile, INSPEC, Metadex, Pollution Abstracts, Public Affairs Index, Veterinary Science Database, Civil Engineering Abstracts
  • Keywords: Economic freedom, human capital, institutional quality, load capacity factor, low-carbon energy
  • Open Archive Collection: Article
  • Azerbaijan State University of Economics (UNEC) Affiliated: Yes

Abstract

This study examines the impact of economic freedom, human capital, globalization, low-carbon energy, and institutional quality on the load capacity factor in E7 countries from 1995 to 2019, aiming to contribute to the discourse on SDGs 7 and 13. The empirical analysis employs advanced panel data techniques for robustness. Results reveal significant differences across E7 countries. Accordingly, human capital, economic freedom, and low-carbon energy increase environmental sustainability, while globalization and institutional quality reduce it in Brazil. Low-carbon energy improves China’s environmental quality, but weak institutions decrease it in China and Russia. Economic freedom increases Mexico’s environmental performance, highlighting the role of market mechanisms. These findings suggest that E7 countries should strengthen institutional quality, align globalization with environmental goals, and implement stricter regulations. Future research should explore environmental taxation and policy stringency in mitigating environmental degradation.