Tool wear progression is inevitable in precision cutting. However, the effect of tool wear on energy consumption at machine, spindle, and process levels is yet to understand. In this study, specific energy in dry milling of AISI H13 was studied at the machine, spindle, and process levels. The effect of process parameters and tool wear progression on energy consumption at each level was investigated. The emissions and environmental impact induced by the machine tool's energy consumption and the cutting tool embodied energy were investigated. The results indicated that tool wear progression only has a predominant influence on energy consumption at the process level but not the machine and spindle levels. However, the cutting tool embodied energy had a significant effect on total specific energy, process emissions, and environmental impact in hard milling. The predictive models have been developed to quantify the relationships between material removal rate and specific energy, emissions, and environmental impact.