How do households dispose of disposable income

Corning Gorilla Glass TougherTogether. ET India Inc. ET Engage. ET Secure IT. Web Stories. Morning Brief Podcast. Economy Agriculture. Foreign Trade. Company Corporate Trends. Defence National International Industry. International UAE. Saudi Arabia. US Elections World News. Disposable income growth of households falls to 0. Rate Story. However, given that Equations 5 and 6 both have binary dependent variables, the errors of the two models are likely going to be correlated, hence the choice of the Bivariate Probit model, which is stated thus:.

Both Equations 7 and 8 also include a set of independent variables denoted as d i in dummy form and x i in continuous form, while u i and z i represent the error terms. In Equations 7 and 8 , the necessary assumptions for the Bivariate Probit model estimation were made through the use of STATA12 statistical software, where the parameter of the correlation between the error terms in the two equations is presented. If this is so, it confirms a significant correlation between the error terms, which further emphasizes that estimating the models separately using a conventional Probit model would give biased parameters [ 31 ].

The results for the socio-economic variables of the respondents across the nine provinces in South Africa Table 1 reveal that the mean age of the household heads was 49 years, which indicates that South Africa has a dynamic household head age group, which could be economically advantageous to the nation for the workforce.

The Eastern Cape had a mean age of The result was in line with [ 10 , 53 ], whose report ascertained that most of the household heads in South Africa were in the economically active age range.

The pooled data results reveal that an average The Free State Province reported the least attainment in formal education Distribution of respondents by selected socio-economic characteristics of household heads. Our results also show that the mean monthly income for households in South Africa was estimated at 11, This result is not in conformity with a number of studies [ 9 , 33 , 57 ], which reported that there is a negative relationship between poverty low income and environmental conservation as indicated in the study.

This relationship leads to environmental degradation. Furthermore, this research also revealed that out of every 10 households sampled Male-headed households accounted for approximately The waste disposal methods adopted in a community dictate the level of environmental safety in that society.

A number of authors [ 69 , 70 , 71 , 72 ] opined that there is a significant relationship between waste disposal methods and environmental safety due to contact with harmful and dangerous pollutants, which can be detrimental to health. Free State Households from Gauteng This supports Makgae [ 73 ], who reported that waste disposal and management were serious problems in South Africa, as they were poorly funded, which encouraged financially incapacitated households to adopt their own refuse disposal methods.

Other problems associated with waste management discussed by Ogola, et al. Table 3 shows the prevailing environmental problems as perceived by household heads and that littering is a major environmental problem Irregularity in waste removal or no waste removal at all was the highest Many households perceived littering and refuse dumping anywhere as an environmental problem that requires drastic measures for its control or eradication.

Table 3 indicates that 8. This may be due to the contamination of water bodies such as streams and rivers as a result of inappropriate waste disposal. According to various authors [ 78 , 79 , 80 ], this calls for appropriate waste disposal to ensure access to safe and clean water for home and industrial usage. Slightly over half Table 4 indicates the households not paying for waste disposal, with the Free State and KwaZulu-Natal having the highest values of The respondents involved in waste recycling and selling and the nature of such activities are presented in Figure 4 and Table 5 , with 5.

The Free State The distribution of households in each province based on selling waste revealed that the Eastern Cape Paper 4. Several initiatives to improve household participation in waste recycling have been initiated but encountered set-backs due to poor sustainability at both the government and household levels.

Table 6 presents the results of the Bivariate Probit analysis of cash payments for waste disposal and recycling in South Africa. It is important to mention that we conducted a test for the presence of multi-collinearity among the explanatory variables in order to determine the appropriate variables to be included in the Bivariate Probit analysis.

Following the test, we excluded variables that failed the collinearity test from the final model. Table 6 also shows the level of tolerance of the variables in the analysis, which also serves as a decision criterion for the choice of variables for the Bivariate Probit model. Bivariate Probit results for factors influencing recycling and payment for waste disposal. The computed Athrho for the cash payments 0. This shows that as household income increases, the probabilities of recycling and paying for waste disposal will also increase.

A similar result was reported in Olagunju, et al. This implies that households that have access to social grants have higher probabilities of recycling and paying for waste disposal than their counterparts not receiving any. These results were in line with those of Guerin, et al.

It shows the probability that as the level of education of the household head and the water pollution caused by refuse dumping near water channel increases, holding all other variables in the model constant, there will be a high tendency for waste recycling and payment for waste disposal. The descriptive statistics findings show that there are An average age of 49 years was recorded in the study. In addition, about Moreso, our study revealed that out of every 10 households sampled Many households perceived littering and the dumping of refuse anywhere as an environmental problem that requires drastic measures for its control or eradication.

Approximately half of the respondents were paying for waste disposal, while the majority of the households not paying were willing to do so in the future, provided that the problems associated with waste disposal and recycling were identified and solutions found. The results related to the parameter estimates of waste recycling behaviour and cash payments for waste disposal revealed that they are being affected by either some or all of the socio-economic factors, namely, household income, access to social grants, formal educational level and the age of household head.

The permission that was granted by Statistics South Africa to use the dataset for this study is gratefully acknowledged. Conceptualization, A. All authors have read and agreed to the published version of the manuscript. National Center for Biotechnology Information , U. Published online Oct 1. Find articles by Abeeb Babatunde Omotoso. Find articles by Adebola Saidat Daud. A Find articles by Adebayo Isaiah Ogunniyi. Author information Article notes Copyright and License information Disclaimer.

Received Apr 30; Accepted Jul This article has been cited by other articles in PMC. Keywords: environmental safety, recycling behaviour, refuse disposal, Bivariate Probit model, South Africa. Introduction The increasing volume and complexity of the waste associated with the modern economy poses a serious risk to ecosystems and human health. Methodology 2. Study Area South Africa is one of the largest countries in Africa, with a population of almost 60 million people and total land area of 1,, km 2 , square mile.

Open in a separate window. Figure 1. Map of South Africa, showing the different provinces of the country. Data and Sampling Procedures The data utilized in this study were obtained from the South Africa General Household Survey GHS , a nationally conducted survey of a sample of homes in the country that is performed annually. Core Assumptions of TPB Rational thinking finally enters the picture in this theory where it, when employed, results in rational considerations that, in turn, influence and govern the choices, decisions and behaviours of an individual [ 44 , 45 ].

It focuses on how the individual sees themself as being in control when it comes to performing the specific behaviour in question, and this mostly has a lot to do with the sufficiency of their knowledge, skills and abilities, and the amount of discipline they wield while performing the behaviour [ 42 , 46 ].

For example, the acceptance or approval of family, friends and peers is likely to influence a person into developing a positive attitude toward a behaviour, bolstering their intention to see the specific action through to the end.

Figure 2. Figure 3. Analytical Framework and Estimation Strategy 3. Analytical Framework The analytical framework employed for this study is based on a utility maximization framework proposed by [ 47 , 48 ]. Results and Discussion 4. Distributions of Socio-Economic Variables The results for the socio-economic variables of the respondents across the nine provinces in South Africa Table 1 reveal that the mean age of the household heads was 49 years, which indicates that South Africa has a dynamic household head age group, which could be economically advantageous to the nation for the workforce.

Table 1 Distribution of respondents by selected socio-economic characteristics of household heads. Table 2 Percentage distribution based on waste disposal methods. Table 3 Percentage distribution of environmental problems. Table 4 Percentage distribution based on paying and willingness to pay for waste disposal. Figure 4. Percentage distribution of households based on recycling or selling waste.

Table 5 Percentage distribution types of materials recycled. Table 6 Bivariate Probit results for factors influencing recycling and payment for waste disposal. Error Prob. Coefficient Std. Tolerance Income Rands 0. Acknowledgments The permission that was granted by Statistics South Africa to use the dataset for this study is gratefully acknowledged. Author Contributions Conceptualization, A.

Funding This research received no external funding. Conflicts of Interest The authors declare no conflict of interest. References 1. Mulat S. Willingness to pay for improved solid waste management and associated factors among households in Injibara town, Northwest Ethiopia.

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Sarkhel P. Afroz R. Selected socio-economic factors affecting the willingness to minimise solid waste in Dhaka city, Bangladesh. Plastic bag use in South Africa: Perceptions, practices and potential intervention strategies.

Rahji M. My pinboard Add this view Go to pinboard. Countries Highlighted Countries Highlight countries Find a country by name. Currently highlighted Remove all. Time yearly quarterly monthly latest data available. Definition of Household disposable income Disposable income is closest to the concept of income as generally understood in economics. Last published in Publication. Understanding National Accounts Publication Society at a Glance Publication