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Limitations of the household consumption expenditure indicator

The recreation and education category and the health and medical category are unable to be discussed in depth because complete data sets for each category are unavailable. Where they are reported, the two categories are combined.

The volume of expenditure on goods and services by households is not necessarily a direct measure of the environmental impacts of these goods and services. This is because the links between consumption, economic growth and environmental impact are not straightforward, for example:

  • producers and consumers can reduce the environmental impact of household consumption by making or purchasing more resource-efficient and lower-waste goods
  • while economic growth can impact on the environment, it can also provide the means to fund public environmental protection expenditure.

However, household consumption expenditure is widely recognised and used internationally as a good indicator of the pressures that consumption can put on the environment. It is also easily assessed across countries, allowing international comparisons to be made.

 

This information has come from the Household Consumption Expenditure environmental report card.

 

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Last updated: April 2009