The opportunity cost of household transport expenditure in South Africa
Journal of Transport and Supply Chain Management
| Field | Value | |
| Title | The opportunity cost of household transport expenditure in South Africa | |
| Creator | Knipe, Mienke Krygsman, Stephan | |
| Description | Background: Transport affordability is a significant concern for South African households, who spend nearly a fifth of their budgets on transport. Contributing factors include a lack of affordable public transport options and spatial mismatch. Since 2015, stagnating national budgets and a declining share allocated to the transport portfolio have exacerbated household transport expenses, limiting economic mobility.Objectives: This article examines how changes in household transport expenses impact other essential expenses such as food, housing, clothing, recreation and education. Understanding these expenditure trade-offs provides insights for policy, especially as the National Public Transport Subsidy Policy is being prepared.Method: Using data from the Living Conditions Survey of 2014/2015, the study applies fractional logit regression models to estimate the impact of varying household transport expenses on other expenditure categories across diverse household demographics.Results: Findings indicate that increased household transport expenses significantly reduces allocations to essential items, notably food and housing, with the effects varying by income level, settlement type, and household composition.Conclusion: A core recommendation is to reduce transport expenses for low-income households through government intervention as this will increase these, mostly previously disadvantaged households’, economic mobility.Contribution: Results show that if low-income households allocate no more than 10% of their expenditure budgets to transport, they could potentially increase their expenditure share on food (+1.30%) housing (+1.18%) clothing (+0.86%) recreation (+0.31%) and education (+0.08%). | |
| Publisher | AOSIS | |
| Date | 2024-12-10 | |
| Identifier | 10.4102/jtscm.v18i0.1081 | |
| Source | Journal of Transport and Supply Chain Management; Vol 18 (2024); 10 pages 1995-5235 2310-8789 | |
| Language | eng | |
| Relation |
The following web links (URLs) may trigger a file download or direct you to an alternative webpage to gain access to a publication file format of the published article:
https://jtscm.co.za/index.php/jtscm/article/view/1081/1857
https://jtscm.co.za/index.php/jtscm/article/view/1081/1858
https://jtscm.co.za/index.php/jtscm/article/view/1081/1859
https://jtscm.co.za/index.php/jtscm/article/view/1081/1860
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