RESUMEN

In the contemporary landscape, sustainable development became major challenge for the economy which is tackled if environmental issues are resolved. In this regard, this study investigate renewable energy, institutional quality, foreign direct investment (FDI), economic growth on environmental pollution in E-7 countries (Brazil, Russia, China, Indonesia, India, Mexico, and Turkey). Utilizing annual data from 2002 to 2023, selected the panel Nonlinear Autoregressive Distributed Lag (NARDL) after applying stationary process. The results depict that there is short and long run relationship among the selected variables, CO2 emissions exhibit an asymmetrical response to positive and negative shocks in exogenous variables. A one-percent change in FDI, GDP, IQ and EC reduce the carbon emission. Our research concludes with policy recommendation that prioritize priorities economic growth and environmental sustainability. To achieve a healthy environment and sustainable growth in the E7 countries, it is essential to strengthen institutional frameworks, encourage green investments, and foster technical innovation.