This study analyzes the complex interrelationships among digitalization, environmental tax revenues, and energy resource capacity within the Environmental Kuznets Curve (EKC) framework, focusing on their collective influence on environmental quality in 88 countries, including low- and middle-income (LMICs) and high-income countries (HICs). Using the Cross-Sectionally Augmented Autoregressive Distributed Lag (CS-ARDL) approach, an advanced model that accounts for cross-sectional dependence and slope heterogeneity in panel data, we find that environmental taxes and energy resource capacity affect environmental quality differently across income groups. In HICs, technological progress, especially in information and communication technology (ICT), significantly improves environmental outcomes, while in LMICs the impact of digitalization is less pronounced, suggesting the need for tailored environmental strategies. These findings provide valuable insights for policy frameworks that balance economic growth with sustainability goals, and highlight the importance of context-specific approaches to achieving the Sustainable Development Goals (SDGs).