This is a replication of the project I have created during my Master studies. Original study I have performed using E-views and STATA program. I wanted to adjust it to Python and learn new statistical libraries.

This project tries to find any signs of the existence of the Environmental Kuznet's Curve:

Since the global warming and the environment became such a hot topic, many of the scientists started to analyze this issue and tried to look for solutions. Many believed that finding relation between economy and environment, may help in setting right policies and direct the correct regulations, that would enable us to control and lower the growth of GHG emissions. However, it seemed that nothing can stop the sudden increase in the emissions that boosted after the year 1950 . Every country’s main goal was to growth it’s economy and beat others in the industrialization race. Unfortunately, along with the economy growth, the environmental degradation worsens, implying that both goals cannot be obtained together. That was when the Russian-American economist, Simon Smith Kuznets in the 1950-60s has introduced a new hypothesis, later called a Kuznets Curve. This statistician claimed that there exists a concave shaped relation between the economic development and the economic inequality. To be precise, it says that there are market forces that along with economic growth, increase the economic inequality up to a maximum point, after which it decreases. The relationship described by Kuznets, represents the development of the economy from the agricultural focused to the industrialized.