This study aimed to examine the role of institutional quality on environment and energy consumption for 66 developing countries by using data from 1991 to 2017. Different environmental indicators such as CO2 emissions, CH4 emissions, forest area, organic water pollutants, and energy consumption. The paper constructs institutional quality index by covering three main aspects: political stability, administrative capacity, and democratic accountability. System generalized method of moments results reveal that institutional quality has a positive impact on most of the environmental indicators such as CO2 emissions, CH4 emissions, and forest area. Institutional quality was having a positive impact on energy consumption based on oil and fossil fuel resources. Furthermore, it results in a signal that economic globalization has not increased environmental quality over time in developing countries.