Heterogeneous effects of green finance, governance, and geopolitical risk on renewable energy consumption in G7 economies

This study examines the effects of environmental policy stringency, green finance, geopolitical risk, governance, economic growth, and inequalities on renewable energy consumption across G7 economies (2003–2023). Employing Quantile Method of Moments Regression (QMMR) and Dumitrescu–Hurlin causality tests, the analysis captures heterogeneous dynamics across energy transition stages. Findings indicate that policy stringency, green finance, governance quality, and economic growth drive renewable energy consumption, with regulatory and financial mechanisms exerting the strongest impacts at lower-to-middle quantiles. Conversely, geopolitical risk dampens renewable consumption, particularly at higher quantiles due to heightened investment uncertainty and supply chain vulnerabilities. Income and gender inequalities exhibit marginal effects, confirming that institutional capacity and regulatory frameworks predominate in advanced economies. Ultimately, the results underscore the need for stage-differentiated policy mixes integrating green finance, robust governance, and risk mitigation to advance clean energy targets (SDGs 7, 10, and 13).