The nexus of foreign direct investment and economic growth has been extensively investigated by the researchers of environmental economics; however, few studies have been conducted to find the impact of financial development and technological innovation in the backdrop of the environment. In the G8 countries (UK, USA, Canada, Germany, France, Italy Russia, Japan), the rapid increase in urbanization resulting from their speedy economic growth has brought about a huge increase in energy consumption that is in turn responsible for contemporary environmental degradation. This research intends to find the impact of technological innovation, financial development, foreign direct investment, energy use, and urbanization on carbon emission in G8 member countries, based on data from 1990 to 2019. The findings present strong cross-sectional dependence within the panel countries. According to the FMLOS estimator, a statistically significant long-run and negative association with CO2 has been found between foreign direct investment, financial development, and technological innovation in G8 countries. A long-run bidirectional causality has been found among economic growth, financial development, urbanization, trade openness, CO2 emission, and energy use; antithetically there is unidirectional causality between carbon emission and foreign direct investment. A quality foreign direct investment is the present demand for the development of industries, technological innovation, and financial development for G8 countries. Furthermore, urbanization plays a major role in environmental degradation, and more improved policies are needed for these countries.

环境经济学研究人员对外国直接投资与经济增长的关系进行了广泛的研究；然而，很少有研究发现金融发展和技术创新在环境背景下的影响。在 G8 国家（英国、美国、加拿大、德国、法国、意大利、俄罗斯、日本）中，由于经济快速增长而导致的城市化进程迅速增加，导致能源消耗大量增加，这反过来又导致当代环境恶化. 本研究旨在根据 1990 年至 2019 年的数据，找出技术创新、金融发展、外国直接投资、能源使用和城市化对 G8 成员国碳排放的影响。调查结果表明小组国家内部具有很强的横截面依赖性。根据 FMLOS 估计，在 G8 国家的外国直接投资、金融发展和技术创新之间发现了与 CO2 具有统计学意义的长期负相关关系。经济增长、金融发展、城市化、贸易开放、二氧化碳排放和能源使用之间存在长期双向因果关系；相反，碳排放与外国直接投资之间存在单向因果关系。高质量的外商直接投资是目前对八国集团国家产业发展、技术创新和金融发展的需求。此外，城市化在环境退化中起着重要作用，