As production processes improve, the stimulation of economic growth has overlooked its externalities over time. In pursuit of sustainable development, nations were driven to combat climate change and increasing greenhouse gas emissions through the Kyoto Protocol. The policy brief is based on the investigation of the Kyoto Protocol Mechanisms (Clean Development and Emissions Trading Scheme) through difference-in-difference (DID) estimation, together with panel regression to evaluate the path towards viability using the metrics for externalities (total greenhouse gas emissions) and economic growth (GDP). For this reason, the DID takes into account the quantitative aspect in evaluating the effectiveness of the said mechanisms by investigating the pre- and post-treatment periods. The panel regression results then quantify the influence of the drivers of development towards the specified metrics. Results show that relying on the mechanisms aforementioned in promoting and reinforcing cleaner economic growth throughout the globe is inefficient. Such evidence will be fundamental in enhancing the said mechanisms for its continuity.
