The debate regarding mitigation of carbon dioxide emissions and fiscal decentralization has gained extreme attention, but only a little evidence supports this issue. Therefore, this study adopts fiscal decentralization, green technology innovation, and institutional efficiency that reduce environmental degradation and help to create a sustainable environment in seventeen developed countries. This study applies a novel Methods of Moment's Quantiles Regression (MMQR) which helps to deal with asymmetricity, structural change and non-normality. The overall results exhibit emissions mitigating effect of fiscal decentralization, green technology innovation and institutional efficiency. However, the emissions mitigating effects of fiscal decentralization is the lowest for lower quantiles and the highest for higher emissions quantiles. In contrast, emission reduction effect of green technology innovation and institutional efficiency is higher for lowest quantiles and lower for highest quantiles. These results confirm the asymmetric effect of fiscal decentralization, green technology innovation, and institutional efficiency on carbon emissions, and validating that their effect is not alike across all distribution, rather significantly varied at lower, medium, and higher quantiles. These results offer valuable suggestions to improve the environmental sustainability.

Digitalization has emerged as a key player in reducing pollution and fostering a shift towards a low-carbon economy. However, its effectiveness in enhancing environmental sustainability hinges on the collaborative efforts of various economic stakeholders and their engagement with digital technologies. This research delves into the role of digitalization in advancing green innovation and facilitating the transition to renewable energy, focusing on its impact on environmental sustainability. Analyzing data from leading Asian countries from 1990 to 2022 through Panel quantile regression, the study reveals that digitalization significantly boosts environmental sustainability with green innovation and energy transition efforts. The findings highlight that green innovation is critical in diminishing ecological degradation, with notable effects (−0.085%, −0.104%, and −0.028%) across different quantiles, decreasing resource consumption and fostering sustainability. Furthermore, the shift towards renewable energy contributes to a cleaner environment by supporting decarbonization initiatives, thereby lessening environmental degradation. The analysis demonstrates that digitalization (−0.002%, −0.015%, −0.006%) curtails environmental degradation across various quantiles. Importantly, digitalization's interaction with green innovation and renewable energy acts synergistically to curb ecological degradation in Asia's leading economies. The study suggests that policy integration involving digitalization and green innovation could yield more excellent environmental benefits than the isolated impact of digitalization. By enhancing efficiency, optimizing resource utilization, encouraging the uptake of renewable energy, and fostering sustainable practices, the combined effect of digitalization and green initiatives offers substantial prospects for reducing environmental degradation. Consequently, policy frameworks that incorporate digitalization can significantly improve environmental quality.