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.