This study attempted to integrate the Mechanistic-Empirical Pavement Design Guide (MEPDG) analysis into the life cycle assessment (LCA) framework to explore the potential of terminal blend rubberized bitumen (TBRB) technology as a sustainable alternative to traditional paving materials in the United Arab Emirates (UAE). In addition, the concept of environmental impact monetization is introduced for quantifying shadow prices to be used in cost–benefit analyses and encourage the adoption of sustainable technologies in pavement construction. The findings demonstrate that hot mixed asphalt (HMA) with TBRB outperforms asphalt mixtures with neat bitumen (NB) and polymer-modified bitumen (PMB) containing 7% linear styrene–butadiene–styrene, with respect to durability and environmental impacts. The cradle-to-grave analysis, which includes maintenance and rehabilitation cycles based on the MEPDG results, alters the hierarchy among scenarios compared to conventional cradle-to-gate analyses, highlighting the importance of the use phase in LCA. Overall, the asphalt mixture with TBRB exhibits 83% and 63% less global warming potential than mixtures with NB and PMB, respectively. The monetization process through the distance-to-target approach returned the shadow price of US$157 per metric ton of CO2eq in the UAE. Based on this value, the HMA with TBRB, if selected over those with NB and PMB, offers environmental savings of US$47,186/km-lane and US$15,852/km-lane for the case study investigated.