<p>The deliberate release of carbon dioxide (CO₂) is a key factor contributing to climate change and other environmental problems. In order to determine how socioeconomic and technological variables influence emissions, this study employs the STIRPAT framework in conjunction with linear and non-linear (symmetric and asymmetric) autoregressive distributed lag models. This analysis explores the impact of smart grid technology (SMGD), renewable energy (RE), institutional quality, and urbanization on CO₂ emissions from 1995 to 2021. The research aligns with the sustainable innovation theory and institutional theory. The results show that using RE sources and SMGD significantly cut down on CO₂ emissions. Conversely, urbanization and institutional quality continue to exacerbate environmental degradation. The results are consistent across numerous estimation methods, including fully modified least squares, dynamic ordinary least squares, and canonical cointegrating regression. The study adds to the literature by presenting empirical evidence on the interconnection of technology, socioeconomic variables, and environmental impacts. It emphasizes how crucial it is to match economic and environmental initiatives with policies that incorporate technology innovation. Policymakers can decrease CO₂ emissions and improve long-term sustainability by encouraging the deployment of SMGD and RE sources, as well as by optimizing institutional quality and regulating urbanization. This study provides vital information for accomplishing sustainable development objectives and promoting global climate action. </p>