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Environment New Zealand 2007 questions and answers: Key findings - Household consumption

Environment New Zealand 2007 publications

How does household consumption impact on our environment?

Increased consumption can mean greater use of natural resources and increased generation of waste. Both of which have implications for the environment.

What are the trends in household consumption according to the report?

In a nutshell

As in other OECD countries, consumption of goods and services by New Zealand households continues to grow as our population increases and our economy grows.
Reflecting this increase in consumption, New Zealand’s ‘ecological footprint’ – one measure of our sustainability – has also grown in the last few years. Our footprint is high by OECD standards, although New Zealand generally rates well when other sustainability indicators are used.

Facts and figures

Total household consumption in NZ increased by 39 per cent over the past decade (1997 – 2006), compared to a population increase of 11 per cent and GDP growth of 30 per cent.
Over the same period, per capita expenditure increased by 26 per cent. Between 1997 and 2006, expenditure on all goods and services except housing (excluding mortgages and house purchases) increased at a faster rate than GDP.
Housing (excluding mortgages and house purchases), transport, and food and beverages remain the top three consumption categories. From 1997 to 2006 the expenditure within these top three consumption categories increased by 15.6 per cent, 33.3 per cent and 41.1 per cent respectively.
When adjusted for inflation, expenditure on food and beverages is now the top expenditure category. It has overtaken expenditure on housing (excluding mortgages and house purchases). This may reflect increasing discretionary expenditure as we get wealthier.

Ecological footprint

Between 1998 and 2004, New Zealand’s ecological footprint increased from 19.9 million global hectares to 22.9 million global hectares (excluding exports).
On a per capita basis, New Zealand’s ecological footprint increased from 5.24 global hectares in 1998 to 5.65 global hectares in 2004.
In 2004, New Zealand exported an ecological footprint equating to 15.5 million global hectares, meaning that we contribute to the ecological footprint of other countries.
A study published in 2003 by the OECD found that New Zealand has the sixth largest per capita ecological footprint within the OECD at 5.9 global hectares per capita. (Note that the ecological footprint for New Zealand calculated by the OECD differs from that estimated in New Zealand due to different calculation methodologies).

What is the government doing to minimise the impacts of household consumption on the environment?

A number of initiatives related to the findings of the Household Consumption chapter are underway and under development. Examples include:

The Households Sustainability Programme as part of six sustainability initiatives announced in 2007 to move New Zealand towards a sustainable nation
The Eco-verification programme as part of the government’s six sustainability initiatives announced in 2007
The Environmental Choice New Zealand eco-labelling scheme
Minimum Energy Performance Standards for appliances
Energy rating labels provide consumers with information on how much electricity an appliance uses in a year.
Water Efficiency Labelling Scheme
The 2007 NZ Energy Efficiency and Conservation Strategy
The Emissions Trading Scheme has been implemented to introduce a price on greenhouse gas emissions
The Warm Up New Zealand: Heat Smartprogramme gives New Zealanders the opportunity to make their homes warmer, drier and more energy efficient. The Energy Efficiency and Conservation Authority has a number of Programmes delivered through partnerships to assist the private sector, community groups, industry associations and central and local government.
Home Energy Rating
The Solar water heating programme, to encourage the uptake of solar water heating
Smarter homes website launched in 2007
The Fuel$aver website, launched in 2006, to encourage the purchase of fuel efficient vehicles
Business Partnerships for Sustainability Programme to identify and leverage off market opportunities from sustainability, and build the capability of New Zealand firms and sectors (especially tourism and food and beverage) to respond.

How can New Zealanders reduce the pressures of household consumption on the environment?

Visit www.sustainability.govt.nz to find out how you can reduce the impact of your consumption choices on the environment.
You can also visit the websites listed under the question above.

Environment New Zealand 2007