This study examined the connection between intra-industry trade (IIT) and its impact on United States carbon dioxide (CO2) emissions. The research also delves into the influence of foreign direct investment (FDI) on CO2 emissions, considering the arguments presented by the pollution haven hypothesis and the halo hypothesis. Employing econometric techniques, specifically panel data analysis, this investigation utilized a Pooled Mean Group (PMG) of an Autoregressive Distributed Lag (ARDL) model. The initial phase of the analysis involved conducting unit root tests, which revealed that IIT, United States renewable energy, and United States FDI are integrated when examined at the first differences level. Subsequently, the study conducted tests to assess cross-dependence among variables. The results of the variance inflation factor test indicated that FDI and IIT do not exhibit multicollinearity issues. In terms of cross-sectional dependence, the investigation concluded that there is no dependence among the variables. In the econometric findings obtained through the ARDL estimator, it was observed that IIT displays a negative correlation with United States CO2 emissions, implying that this type of trade promotes environmental improvements. Moreover, United States renewable energy is adversely affected by CO2 emissions, suggesting that renewable energy initiatives aim to reduce pollution. Finally, United States FDI is found to reduce CO2 emissions, a trend attributed to factors such as product differentiation, innovation, and monopolistic competition.