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4 Indicator Specifications

4.1 Household consumption

Household consumption has a number of environmental impacts. As an example, the production of goods and services almost always involves the use of energy, transport, and raw materials, and creates waste. Household consumption can be a key driver of production patterns. For some consumables, households may represent the largest consumer sector in the economy (eg, energy, if transport fuels are included). Consumer behaviour in households is therefore an important driving force behind environmental pressures.

4.1.1 Indicator and variable description

Expenditure by households on goods and services can be treated as equivalent to the levels of consumption of these goods and services by households.

The household consumption indicator tracks changes in total (national) Household Consumption Expenditure (HCE). Two types of change can be distinguished: changes in magnitude and changes in consumption pattern, ie, how total HCE is distributed among seven different categories of goods and services (variables) (Table 2).

Table 2: Household consumption expenditure indicator and variables

Indicator Variable Includes
Consumption expenditure by households Food and beverages Purchases of retail food, and both alcoholic and non-alcoholic drinks.
Clothing and footwear Clothing, footwear, and footwear repairs.
Housing Rental payments and imputed rent.*
Household goods and services Fuel and energy for the home; furniture and major appliances (eg, purchases and repairs), textiles (eg, curtains) and tableware (eg, crockery).
Transport Vehicle operation (eg, petrol, vehicle parts and repairs), purchased transport (eg, taxi fares, bus, rail and aeroplane tickets), and vehicles purchased.
Hotels and restaurants Accommodation, takeaways, and food and beverages purchased in restaurants.
Other goods and services Personal goods and services, post and telephone, and services not classified elsewhere.

* Imputed rent is where a cash value is ascribed to the services gained from housing that are not usually exchanged for money. Imputed rent is used because mortgage payments are not classified as consumption expenditure and therefore are not included in any of the categories in this table.

By combining this indicator with population data (number of inhabitants and households), it is also possible to show state and trends in household consumption expenditure on a per capita and per household basis. Showing household consumption on a per capita basis is important as it filters out the effect of population growth. Showing expenditure per household is of interest because the average size of New Zealand households has shown a reduction over recent decades. Such a reduction has environmental consequences, because smaller households are generally less efficient than larger ones in terms of resource use.

4.1.2 Indicator calculation and measurement

Sampling frequency: Annual National Accounts figures.

Data needed to compile the indicator: The National Accounts dataset provides information on quarterly and annual household spending for the categories listed above.

Data sources: Per capita information for HCE can be calculated using Statistics New Zealand (StatsNZ) National Accounts population estimates of resident population. Per household figures can be calculated using National Accounts estimated household population data, as obtained from StatsNZ. Data from the three-yearly StatsNZ Household Economics Survey may also provide supporting information of value. For more information on data sources refer to the Ministry for the Environment’s document Data stock-take for the core set of national environmental indicators and associated variables.

Spatial coverage and length of record: Information at the national level only. Household consumption expenditure data published from June 1987 quarter. Backdated National Accounts population and household population data is available by request.

Measurement methods: Standard Statistics New Zealand methodology.

Method for variable calculation: The display of this indicator as trends over time requires nominal dollar values to be inflation-adjusted by way of the Consumer Price Index (CPI).

4.1.3 Sample reporting formats

Table 3: Household consumption expenditure in real figures, year ended 31 March 2008, 1995/96 prices

Category Total household consumption expenditure
($ million)		 Per household expenditure
($)		 Per capita expenditure
($)
Food and beverages 13,990 9,196 3,299
Housing 13,583 8,928 3,203
Transport 12,790 8,407 3,016
Household goods and services 11,056 7,267 2,607
Other goods and services 9,153 6,016 2,158
Hotels and restaurants 5,969 3,924 1,407
Clothing and footwear 4,406 2,896 1,039
Recreation and education and Health and medical combined 12,899 8,479 3,041
Less net tourist expenditure -1,518 -998 -358
Total 82,328 54,116 19,412

Data source: Statistics New Zealand.

 

Figure 1: Household consumption expenditure, 1992–2006
(year ending March, 1995/96 prices, 1992=100)

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Figure 2: Household consumption expenditure and GDP, 1992–2006
(year ending March, 1995/96 prices, 1992=100)

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Figure 3: Household consumption expenditure per capita by consumption category, 1997 and 2006 (year ending March, 1995/96 prices)

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Figure 4: Household consumption expenditure per capita by consumption category, 1997–2006 (year ending March, 1995/96 prices)

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4.1.4 Compatibility with other indicator programmes

National indicator sets International indicator sets
Statistics NZ linked indicators OECD Core Environmental Indicators United National Commission of Sustainable Development sustainable development indicators

Note: Small differences may exist in the way these variables are represented in other indicator sets.

Source: Web sites of Statistics New Zealand, UN Division of Sustainable Development, OECD.

4.1.5 References

Organisation for Economic Co-operation and Development (OECD). 1999. Towards More Sustainable Household Consumption Patterns: Indicators to Measure Progress. ENV/EPOC/SE(98)2/FINAL, OECD, Paris.

Ministry for the Environment. 2007. Environment New Zealand. MfE, Wellington. ISBN 978-0-478-30192-2.

Statistics New Zealand (StatsNZ). 2002. Monitoring Progress Towards a Sustainable New Zealand. StatsNZ Catalogue Number 16.001, Wellington. ISBN 0-478-26904-8.

 

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