The present research investigates the environmental effects of trade, Renewable Energy Consumption (REC), and industry value-added in South America, doing spatial analyses from 1990-2018. The income per capita has a positive effect on the local CO₂ emissions. Further, it has negative environmental spillovers in neighboring countries regarding consumption-based CO₂ emissions but not in terms of territory-based CO₂ emissions. Exports have negative and positive effects on consumption and territory-based CO₂ emissions, respectively. Moreover, exports carry positive environmental spillovers in neighboring countries in case of both consumption and territory-based CO₂ emissions. Imports have a positive effect on consumption-based CO₂ emissions but could not affect territory-based CO₂ emissions. Industry value-added has negative environmental spillovers in the case of consumptionbased CO₂ emissions. REC helps to reduce consumption and territory-based CO₂ emissions in both local and neighboring countries.