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State of the Environment Environment New Zealand 2007 - Summary Online version Section two: Pressures on the environment
Section two: Pressures on the environment
Household consumption
Our lifestyles and the environment
Consumption by households affects the environment. Our lifestyle choices, the goods and services we consume, and how these are produced and disposed of all affect the extent and manner of our impact on the environment.
While the pressure on the environment caused by a single household may appear small, the combined impact of all households in New Zealand can be significant. As an example, households are now the largest energy use ‘sector’ in New Zealand, when transport fuels are included.
Household consumption is a driving force behind the production of goods and services, and the generation of waste. The impacts on the environment from households have grown over recent decades, and are expected to intensify over the next two decades, especially for energy, transport, and waste.
Purchasing patterns can change over time. They are influenced by several factors, including population size, income, the availability and affordability of goods and services, economic trends, and consumer preferences. Table 2.1 summarises observed trends in household behaviours, and how these behaviours relate to environmental impacts.
Increasing total and per capita consumption
As our population and economy have grown, so, too, have spending and consumption by New Zealand households.
Between 1997 and 2006, real total household consumption expenditure (that is, expenditure adjusted for inflation) increased by 39 per cent, compared with growth of 30 per cent in gross domestic product (GDP), and a population increase of around 11 per cent over the same period. However, we cannot attribute our increasing expenditure solely to our increasing population and wealth. Real per capita household consumption expenditure increased by about 26 per cent, which was more than the increase of per capita GDP. Real consumption expenditure per household increased by 20 per cent over the same period.
These figures may reflect to some degree how household numbers (number of dwellings), household size (number of people living in a dwelling), and the size of our households (floor area) are changing in New Zealand. Overall, the trend has been toward more households and larger dwellings with fewer occupants. This trend can affect household consumption. As an example, larger houses need more energy to heat them on average than smaller houses. Likewise, smaller households – fewer people occupying a housing unit – generally use more space, energy, and water, and generate more waste per person than do larger households.
Table 2.1: Summary of trends in and environmental impacts of household waste generation and consumption of energy and water
| Trends at household level | Determinants of environmental impact | Environmental impact |
|---|---|---|
|
Growing demand for energy and water services tied to larger sized homes, and more energy and water appliances Growing waste generation and recycling Diversification of waste stream |
Scale of energy and water use Energy and water efficiency rates Fuel source for heating and electricity generation Availability and quality of water resources Volume and composition of waste and method of waste disposal Recycling rates and waste prevention |
Greenhouse gas emissions and air and water pollution linked to the generation and use of energy Water resource depletion and pollution Greenhouse gas emissions and air, water, and soil pollution from inappropriate waste management |
Source: Adapted from Organisation for Economic Co-operation and Development, 2002.
Changing consumption patterns
New Zealanders are not only spending more than they were 10 years ago, the things they buy have also changed.
Household consumption expenditure can be broken into seven separate categories, such as food and beverages, clothing and footwear, transport, or housing (excluding mortgages and housing purchases). Since 1997, ‘housing’, ‘transport’, and ‘food and beverages’ have consistently appeared as the top three expenditure classes in New Zealand, with housing the largest single item until 2005.
However, Figure 2.1 shows that in 2006, each New Zealander spent more on ‘food and beverages’ than any of the other goods and services categories. This ranking is affected somewhat by the way expenditure figures over several years are adjusted for inflation. For example, if we consider expenditure figures for the year 2006 without adjusting them for inflation, housing remains the top category for that year.
Among the seven consumption categories, per capita expenditure between 1997 and 2006 on ‘food and beverages’ and ‘household goods and services’ (for example, electricity, major appliances, and furniture), showed the greatest absolute increases. Per capita expenditure on ‘household goods and services’, and ‘clothing and footwear’ showed the greatest percentage increase in the same period (about 45 per cent per person in both cases).
Figure 2.1: Real household consumption expenditure per capita, 1997 and 2006 (March financial years)
See figure at its full size (including text description). Environmentally responsible consumption
Today, many New Zealanders are interested in reducing the impact of their purchasing habits on the environment. We can do so by buying only what we need, choosing products with less packaging, and choosing durable products instead of disposable ones.
As consumers, we can also use our purchasing power to influence the supply chain. By selecting products that have been produced sustainably and that generate less waste, we support the transition to cleaner production processes. By buying products that minimise resource use during their life cycle – such as a fridge with a high ENERY STAR rating – we reduce our impact on the environment over the long term.
Many of these actions have important co-benefits such as saving us money or – in the case of walking short distances rather than driving – making us healthier.
A number of local and government initiatives are now available in New Zealand to help householders reduce their transport, energy and water use and their waste. Some of these are detailed in other sections of this report. Examples include the Sustainable Living Programme, developed by eight local and regional councils; government-supported eco-labelling schemes which help consumers to identify and buy greener products; and the government’s new Household Sustainability Programme which focuses on helping New Zealanders take practical action in and around the home to become more environmentally-friendly.
