Monthly Archives: January 2026

Ticking the Right Box: How Time-Oriented Marketing Shapes What People Buy

Which feels further away: the year 2016, or ten years ago? And which seems closer—2036, or ten years from now? Although these expressions describe the same points in time, they do not feel the same. New research shows that the way time is framed, either as a calendar year or as a length of time, can subtly but powerfully shape how people experience the past and future, with real consequences for consumer decisions.

The research demonstrates that time-based language influences how much value people attach to products and experiences. This matters because references to time are everywhere in everyday life and marketing. Consider a bottle of whisky described as “10 years old” versus one distilled in 2015 and bottled in 2025. While both indicate the same age, consumers do not respond to them in the same way, and one framing can lead people to pay more than the other.

Similar language appears across many markets: five-year mortgages, 2020 model cars, second-hand items described as “bought two years ago,” vintage wines, or furniture ads promising “don’t pay until next year.” These descriptions might appear interchangeable, yet they can create distinct impressions. The research finds that when time is expressed as a length, such as “10 years old,” people tend to perceive it as longer than when the same duration is described using calendar years. This pattern is known as the “year-length effect.”

Whether this effect works in a seller’s favour depends on context. When age adds value, as it often does with whisky, wine, or heritage goods, framing time as a length leads to more favourable perceptions. When age reduces value, as with used or depreciating goods, framing time using years tends to work better. In other words, sellers benefit from making time feel longer when longevity matters, and shorter when newness is desirable.

To test these ideas, the researchers analysed real-world auction data and ran controlled experiments in which participants evaluated products and scenarios described using different time framings. The results were consistent. Whisky auctions showed that bottles described by age fetched prices around nine per cent higher. In contrast, sellers of used goods earned roughly 17 per cent more when they mentioned the purchase year rather than how old the item was.

The effect extends beyond marketing. The researchers argue that time framing can influence important decisions in areas such as retirement saving, responses to climate change, or medical choices. This happens because people perceive differences between large numbers as smaller than differences between small ones. Our mental number line is logarithmic: the jump from 2020 to 2021 feels smaller than the jump from one to two. Ultimately, there is no universally better way to frame time. What matters is whether it helps time feel nearer or further away, depending on the decision at hand.

More information: Deepak Sirwani et al, When ‘Year’ Feels near: How Year versus Length Framing Alters Time Perception and Consumer Decisions, Journal of Marketing Research. DOI: 10.1177/00222437251399115

Journal information: Journal of Marketing Research Provided by University of British Columbia

Electric vehicles could find an early foothold across Africa

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Africa’s vehicle fleet is expected to grow faster than anywhere else in the world, with the total number of vehicles projected to double by 2050. The critical question is therefore not whether mobility will increase, but how that growth will be managed. New research led by ETH Zurich and the Paul Scherrer Institute (PSI), in collaboration with partners from Makerere University, the University of Port Harcourt and Stellenbosch University, suggests that electric vehicles combined with solar-powered, off-grid charging systems could become economically viable in many African countries well before 2040.

For years, most models assumed that internal combustion engine vehicles would dominate African transport systems through mid-century. According to lead author Bessie Noll, a senior researcher at ETH Zurich, these assumptions overlook recent technological and economic shifts. The study, published in Nature Energy, shows that under certain conditions, electric mobility can be feasible far earlier than commonly expected.

A central focus of the research is vehicle charging, a significant challenge in regions where electricity grids are unreliable or absent. The researchers analysed 52 African countries and more than 2,000 locations, modelling scenarios in which electric vehicles are charged using dedicated solar installations paired with stationary batteries. These systems operate independently of the grid, reflecting realities on the ground in many parts of the continent.

Falling costs have been a decisive factor. Solar power and battery storage have become significantly cheaper in recent years, while a growing supply of affordable electric vehicles—particularly from Chinese manufacturers—has entered the market. Electric motorbikes and e-scooters are already exceptionally economical. The study found that a compact solar system can meet the needs of a small car travelling around 50 kilometres per day, with charging costs accounting for only a small share of total vehicle expenses. In many locations, switching to electric two-wheelers already makes strong financial sense.

The research also highlights Africa’s diversity. Countries such as Botswana and South Africa, where financing conditions are relatively stable, could see electric vehicles become competitive sooner. In contrast, nations with high borrowing costs and greater investment risk may experience a slower transition. As Noll stresses, Africa is not a single market, and the point at which e-mobility becomes attractive varies widely across countries.

When compared with vehicles powered by synthetic fuels, electric cars perform far better. Even under optimistic assumptions, synthetic fuels remain costly and are better suited to sectors such as aviation and heavy industry rather than passenger transport in Africa.

According to the researchers, the main obstacle to broader adoption is financing rather than technology. High interest rates increase the burden of the higher upfront costs associated with electric vehicles. Measures such as government guarantees, new financing models or international support could significantly accelerate adoption while creating new economic opportunities, including local assembly and service jobs.

A related study in Nature Sustainability highlights a further challenge: the impact on public finances. Fuel taxes currently generate substantial government revenue, particularly in low-income countries. As electric vehicles replace petrol and diesel cars, early tax reforms and international support will be needed to avoid budget shortfalls. Together, the studies show that e-mobility in Africa is achievable, but its success will depend on thoughtful, coordinated policy choices.

More information: Bessie Noll et al, Battery-electric passenger vehicles will be cost-effective across Africa well before 2040, Nature Energy. DOI: 10.1038/s41560-025-01955-x

Journal information: Nature Energy Provided by ETH Zurich

How Circular Economy Startups Are Opening New Paths in Resistant Markets

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Published in Business Strategy and the Environment, a recent study from the University of Eastern Finland offers a fresh perspective on how circular economy startups succeed in developing their businesses in markets where consumer demand for sustainable products is uncertain and institutional support is limited. Established industry players are slow to change. The research highlights how these startups create new opportunities by committing to reducing their environmental impact, engaging in experimentation through piloting and feedback-driven development, and building close, collaborative relationships with customers and partners.

The study places particular emphasis on the role of value-driven entrepreneurship in shaping markets. Traditionally, research on the circular economy has focused on technologies and business models, often overlooking the human and motivational dimensions of change. The researchers argue that sustainability-oriented entrepreneurs do more than adopt innovative models; they actively work to create opportunities in markets that do not yet align with the principles of circularity. This perspective shifts attention from structural conditions alone to the intentions, values, and actions of entrepreneurs themselves.

Drawing on 31 narrative interviews with startup founders, the study examines the early stages of venture creation, including learning processes and efforts to influence market norms. The findings suggest that circular entrepreneurship is not about identifying ready-made opportunities, but about engaging in continuous learning, interaction, and systemic change. Entrepreneurs are motivated by a desire to address perceived flaws in existing systems, using their ventures as vehicles for broader transformation rather than short-term gain.

Notably, the study finds that many circular economy entrepreneurs view large, traditional markets as opportunities rather than obstacles. While such markets are often resistant to change, their size and inefficiencies offer significant potential for impact. This mindset reflects a readiness to challenge established practices and adapt to uncertainty, demonstrating a willingness to work within imperfect conditions to reshape expectations and behaviours gradually.

The research identifies three key practices through which circular economy startups influence markets. First, a strong commitment to environmental impact provides a clear value base that guides strategic decisions. Second, experimentation through pilots and feedback-driven development enables startups to learn quickly and refine their offerings in response to real-world conditions. Third, close collaboration with customers and partners helps build legitimacy, trust, and shared ownership of new solutions. Together, these practices allow startups to co-create markets while navigating regulatory and competitive pressures.

Overall, the study shows that sustainable startups play a crucial role in accelerating the transition towards more circular and sustainable economic systems. Driven by strong personal values and long-term visions, these entrepreneurs challenge established norms and encourage customers to adopt more sustainable practices. In doing so, they act as important agents of change, demonstrating that even in resistant markets, meaningful transformation can begin with values, experimentation, and collaboration.

More information: Ville-Veikko Piispanen et al, Navigating Market Constraints: Sustainable Startups Driving Transformative Change Through Venture Creation, Business Strategy and the Environment. DOI: 10.1002/bse.70438

Journal information: Business Strategy and the Environment Provided by University of Eastern Finland

Study from ESMT Berlin Uncovers Key Startup Communication Insights

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A new study explains how entrepreneurs can gain support for their ideas from the many people in online audiences who never post comments. While most research focuses on direct interaction with active participants, this work shows that silent observers often matter more. These quiet audience members read discussions, form opinions, and ultimately decide whether an idea is worth supporting, even though they rarely speak up for themselves.

The research finds that the way entrepreneurs reply publicly to a small number of vocal commenters can strongly influence how the wider, silent audience reacts. Instead of simply answering questions narrowly or technically, entrepreneurs who respond more broadly tend to attract greater overall support. This is because their replies help more people in the audience see how the idea connects to their own interests or concerns.

The study introduces the idea of “discourse broadening”. This refers to how much an entrepreneur expands their public responses beyond a short back-and-forth with one commenter. Broader replies might touch on related topics, offer additional perspectives, or highlight broader implications of the idea. Rather than trying to persuade silent observers directly, entrepreneurs influence them indirectly by showing how inclusive, thoughtful, and relevant the conversation is.

To test this idea, the researcher analysed nearly 10,000 product launches by more than 8,000 entrepreneurial teams on Product Hunt. On this platform, new products and start-ups are presented to the public. The results show that discourse broadening can significantly increase support from silent audiences. This matters because, on most online platforms, silent observers make up the majority. Their collective reactions, such as upvotes, interest, or sharing, determine which ideas gain visibility and credibility.

However, the study also shows that broader is not always better. Audience support increases as responses become wider, but only up to a point. If replies are too narrow, they fail to engage people beyond the original commenter. If they are too wide-ranging, they can become confusing and weaken the main message. The most effective approach sits in the middle: broad enough to include others, but focused enough to remain clear.

What works best also depends on who the vocal commenters are. When these commenters resemble the wider audience, less broadening may be needed. When they represent only a small or specialised group, carefully widening the discussion becomes more important, as it helps other observers see where they fit into the conversation.

For founders and anyone communicating about new ventures online, the findings offer practical advice. Successful engagement is not just about responding politely or quickly. It is about using each public reply as a chance to speak to a more expansive room. In practice, this means acknowledging the commenter’s point. Briefly, adding one or two related angles that might interest others, such as how the product improves everyday use, delivers results, or has wider social value.

Overall, the study highlights how influence in online spaces often works indirectly. By managing visible conversations with a few outspoken individuals, entrepreneurs can shape how many silent observers understand and judge their ideas. This makes conversational strategy a key part of practical digital entrepreneurship.

More information: Jamie Seoyeon Song, Mobilizing the silent majority: Discourse broadening and audience support for entrepreneurial innovations, Strategic Management Journal. DOI: 10.1002/smj.70015

Journal information: Strategic Management Journal Provided by ESMT Berlin

How Family Governance Affects Merger and Acquisition Outcomes in Emerging Markets

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Mergers and acquisitions can fundamentally alter a firm’s future, shaping its growth, strategic direction, and long-term survival. For family-owned businesses, however, these decisions extend beyond financial calculations. They are closely linked to issues of control, family identity, and risk tolerance. Recent research by Luiz Ricardo Kabbach, clinical associate professor of management at the Indiana University Kelley School of Business, explores how family governance and ownership structures influence merger and acquisition decisions in emerging markets.

The study, The Role of Family Control and Ownership in M&A Decisions: Evidence from an Emerging Market, published in Research in International Business and Finance, examines why family-controlled firms often behave differently from non-family businesses when considering mergers and acquisitions. The findings show that family firms are generally more cautious about pursuing such transactions, mainly due to their desire to preserve control and minimise financial risk. However, this conservative approach is not uniform and varies depending on how governance within the family firm is structured.

Kabbach and his colleagues explain that family-controlled firms frequently prioritise the preservation of legacy, identity, and decision-making authority over potential financial gains. As a result, they are less likely than non-family firms to engage in mergers and acquisitions. Yet the study highlights that ownership structure plays a critical role in shaping these decisions, particularly through the distribution of voting rights and cash flow rights.

Voting rights determine the level of control a shareholder has over strategic decisions, often allowing families to maintain influence even when their economic ownership is limited. Cash flow rights, on the other hand, reflect the shareholders’ financial exposure to gains and losses. The research finds that higher family voting rights tend to encourage merger and acquisition activity, as strong control reduces fears of losing authority or diluting family identity. In contrast, higher cash flow rights increase financial exposure and loss aversion, making families more reluctant to pursue acquisitions perceived as risky.

The researchers focused their analysis on Brazil, an emerging market with a high prevalence of family-controlled firms and a business environment characterised by both growth opportunities and uncertainty. This context allowed them to examine how family governance operates under conditions of heightened risk. The study was conducted in collaboration with Mariana Martins Meirelles-de-Castro of Indiana University Bloomington and Aquiles Kalatzis of the University of São Paulo.

According to Kabbach, the findings help explain how family firms balance economic objectives with socioemotional considerations. The research sheds light on when families prioritise social attachment over financial performance and how governance structures can help manage this tension. By clarifying the role of ownership and control, the study contributes to a deeper understanding of strategic decision-making in family businesses.

Kabbach hopes the research encourages family firms to recognise governance as a key factor influencing both strategic choices and long-term continuity. Firms that endure across generations, he suggests, often adopt governance structures that promote collaboration between generations, allowing successors to lead while benefiting from the experience of their predecessors. While governance alone cannot guarantee success, it can play an essential role in mitigating risk and supporting informed decision-making, particularly in uncertain and rapidly evolving markets.

More information: Luiz Ricardo Kabbach et al, The role of family control and ownership in M&A decisions: Evidence from an emerging market, Research in International Business and Finance journal. DOI: 10.1016/j.ribaf.2025.103125

Journal information: Research in International Business and Finance journal Provided by Indiana University

How Pursuing Hobbies Outside Work Can Enhance Creativity Inside the Office

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As many people begin the New Year with resolutions to eat more healthily, exercise regularly or learn new skills, new research suggests that hobbies may offer benefits that extend beyond personal wellbeing. Rather than simply making life more enjoyable outside work, hobbies can also enhance creativity, engagement and a sense of meaning in the workplace.

A study by researchers from the University of East Anglia and Erasmus University Rotterdam examined the idea of “leisure crafting” — the intentional shaping of free time through goal-setting, learning and social connection. The researchers found that when people approach their hobbies in a more purposeful way, the positive effects can spill over into their working lives, particularly for older employees.

Published in the journal Human Relations, the study shows that giving people simple, practical guidance on how to develop through their hobbies can lead to noticeable improvements in how they feel and behave both at work and outside it. While it is already well established that hobbies support wellbeing, the findings suggest their value goes beyond relaxation or entertainment.

According to the researchers, hobbies that promote personal growth — rather than passive activities such as excessive screen time — are especially beneficial. By setting goals, learning new skills and connecting with others through leisure activities, individuals can feel more fulfilled and behave more creatively in their jobs.

The study involved nearly 200 working adults with an average age of 46. Participants were asked to take part in a short “leisure crafting” intervention, which began with watching a brief video. The video guided them to create a personal plan for engaging with a hobby in a more meaningful way. This included choosing activities that increased their sense of control, encouraged learning, and fostered social connection, such as sharing a hobby with others or seeking feedback.

Over five weeks, participants completed weekly surveys about how their plan was progressing, what worked well, and what they wanted to change. They were also asked about their emotions and behaviour in both their work and personal lives. Their responses were compared with those of a control group who did not watch the video or make a plan.

The results showed apparent differences. Those who took part in the leisure crafting intervention reported that their work felt more meaningful and worthwhile, and they also described behaving more creatively on the job. Participants aged over 61 additionally reported experiencing more positive emotions overall.

One striking finding was that leisure crafting appeared to have a more substantial effect on work outcomes than on personal life. The researchers suggest this may be because many participants were already reasonably satisfied outside work, while their working lives offered greater scope for improvement. This highlights the potential for activities outside work to play an essential role in improving workplace experiences.

The authors argue that organisations could benefit from recognising employees as whole individuals rather than focusing solely on job performance. Supporting personal growth outside work — for example, by allowing development funds to be used for hobbies or offering short leisure-focused development programmes — could ultimately benefit both employees and employers.

The study is one of the first to demonstrate that leisure crafting can be learned and applied by a mature working population. Its findings underline a simple but powerful message: what people do in their free time can help them become more fulfilled, creative and engaged at work.

More information: Paraskevas Petrou et al, The leisure crafting intervention: Effects on work and non-work outcomes and the moderating role of age, Human Relations. DOI: 10.1177/00187267251407641

Journal information: Human Relations Provided by University of East Anglia

How Tariff Policies Affect Long-Run Economic Growth: Evidence from a New Japanese Study

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Rising trade frictions over the past decade have intensified debate about their long-term implications for global economic growth. What began as targeted policy interventions has evolved into a sustained period of elevated tariffs between major trading partners, raising concerns that trade policy may shape not only short-term trade flows but also long-run productivity and welfare. A prominent example is the current tariff relationship between the United States and China. The United States now applies tariffs averaging 66.4 per cent on Chinese exports, far above its overall average rate of 19.3 per cent. In comparison, China has responded with retaliatory tariffs averaging 58.3 per cent on US exports, compared with its broader average of 21.1 per cent. Such measures disrupt established trade patterns and create incentives that may fundamentally alter where firms produce, invest, and innovate.

Beyond their immediate effects, tariffs can influence the geographical distribution of economic activity, an aspect that plays a critical role in long-term growth. Decisions about where industries locate are closely linked to firm-level investment, knowledge spillovers, and innovation dynamics. Trade barriers can encourage firms to relocate production or shift innovative activities across borders, thereby reshaping industrial structures in ways that persist over time. Despite its importance, this spatial dimension of trade policy has received relatively limited attention in the literature, which has often focused on aggregate outcomes rather than the mechanisms linking tariffs, industry location, and productivity growth.

This gap is addressed by economists Colin Davis of the Institute for the Liberal Arts at Doshisha University and Ken-ichi Hashimoto of the Graduate School of Economics at Kobe University. Their study adapts a two-country theoretical framework to analyse how national tariff policies influence long-run productivity growth through changes in industry location and firm investment behaviour. Building on a model they previously developed, the authors integrate international trade, industrial organisation, and endogenous productivity growth. Professor Davis notes that their work draws on more than a decade of theoretical research into the deep economic mechanisms linking innovation, industrial structure, and long-term growth, with the recent resurgence of tariffs providing a timely and relevant policy application.

The model features two countries and two industries and allows productivity growth to emerge endogenously from firms’ investment and innovation decisions. Using this framework, the researchers examine how unilateral import tariffs affect the spatial distribution of industries, the incentives for innovation, and overall welfare. Numerical simulations are used to evaluate welfare effects under different structural conditions. A key finding is that similar tariff policies can lead to very different growth outcomes across countries, depending on their existing industrial structures. By altering where industries and innovative activities are located, tariffs can either support or undermine long-run productivity growth, helping to explain why trade policies often produce heterogeneous effects across economies.

The study, published in Volume 154 of Economic Modelling in January 2026 after appearing online in November 2025, offers important practical insights. It identifies testable mechanisms—such as firm relocation, knowledge spillovers, and changes in innovation incentives—that can be explored using empirical data on trade policy and productivity. The authors argue that research building on this framework could inform better-designed trade and industrial policies over the coming decade. As Professor Davis concludes, applying this approach empirically can deepen understanding of the long-term consequences of trade interventions and help foster more stable economic conditions and improved outcomes for firms, workers, and consumers.

More information: Colin Davis et al, Asymmetric tariffs and productivity growth in an endogenous market structure, Economic Modelling. DOI: 10.1016/j.econmod.2025.107383

Journal information: Economic Modelling Provided by Doshisha University

Diabetes imposes a multi-trillion-dollar toll on the global economy

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Diabetes mellitus is a chronic metabolic condition and one of the most prevalent non-communicable diseases worldwide. Today, roughly one in ten adults lives with diabetes, and this share continues to rise. As prevalence increases, the disease is placing a growing strain not only on healthcare systems but also on national and global economies. A recent study provides a comprehensive assessment of these impacts by estimating the economic burden of diabetes across countries and over time, while also pointing to strategies that could reduce these costs.

The analysis, conducted by an international research team including economists from IIASA and the Vienna University of Economics and Business, examines the economic consequences of diabetes in 204 countries between 2020 and 2050. The findings highlight the enormous scale of the challenge. Excluding informal care provided by family members, the global economic cost of diabetes is estimated at around US$10 trillion, equivalent to approximately 0.2% of annual global GDP. When informal caregiving is included, however, total costs rise dramatically to as much as US$152 trillion, or 1.7% of global GDP, underlining the exceptional economic significance of diabetes as a chronic disease.

A major driver of this burden is the reliance on informal care. Family members often provide long-term support to people living with diabetes, frequently reducing their working hours or leaving the labour market altogether. These lost labour contributions generate substantial indirect economic costs. According to the study, informal caregiving accounts for between 85% and 90% of the total financial burden, largely because diabetes prevalence far exceeds mortality. While the disease is widespread, people tend to live with it for many years, requiring ongoing care and support.

Although diabetes is more common in lower-income countries, the highest absolute economic costs are borne by the world’s largest economies. The United States incurs the highest total costs, followed by China and India, reflecting their large populations and economic output. Relative measures, however, tell a more nuanced story. As a share of GDP, the burden is highest in the Czech Republic, at around 0.5%, followed by the United States and Germany at roughly 0.4%. On a per capita basis, the heaviest economic burdens are observed in Ireland, Monaco, and Bermuda.

The study also reveals stark differences between high- and low-income countries in how the burden is distributed. In high-income countries, direct treatment costs account for about 41% of the economic burden once caregiving is excluded, whereas in low-income countries, treatment costs make up only around 14%. This contrast reflects unequal access to adequate medical care and highlights how comprehensive treatment regimes for chronic diseases remain concentrated mainly in wealthier nations.

The authors further show that diabetes has amplified the economic effects of the COVID-19 pandemic. As a significant risk factor for severe illness and death from COVID-19, diabetes significantly increased economic losses during the pandemic period, particularly in countries such as China, the United States, and Germany. Overall, the findings point to an urgent need for policy action. Promoting healthier lifestyles, improving early detection through widespread screening, and ensuring timely treatment are essential steps to reduce both the health and economic consequences of diabetes, especially in low-income countries where underdiagnosis remains a serious challenge.

More information: Simiao Chen et al, The global macroeconomic burden of diabetes mellitus, Nature Medicine. DOI: 10.1038/s41591-025-04027-5

Journal information: Nature Medicine Provided by International Institute for Applied Systems Analysis

Research sheds light on financial influences within dual-income relationships

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The familiar phrase insists that money cannot buy happiness, yet it often plays a decisive role in the health of a romantic partnership. New research suggests that finances can quietly strengthen—or strain—relationships, particularly in households where both partners earn an income.

Led by University of Cincinnati doctoral researcher Sharmeen Merchant, the study examined how money functions psychologically within dual-income relationships, moving beyond simple salary figures to explore deeper attitudes and values. Recently published in the Journal of Business and Psychology, the research takes a close look at how partners’ perceptions of money influence one another’s sense of professional satisfaction.

The findings reveal a striking pattern. Men’s feelings of fulfilment at work are closely tied to how their partners think about money. When achievement-oriented views of money are shared within a relationship, men are more likely to evaluate their own career success positively. This effect, however, appears far weaker among women, whose work satisfaction was less dependent on their partners’ financial attitudes.

According to Merchant, the issue is not the size of a pay cheque but the meaning attached to it. She explains that money can represent achievement, status, or materialism, and those interpretations matter deeply within a partnership. When couples see money through a similar lens, it creates a shared framework that shapes how success and fulfilment are experienced.

That alignment appears especially important for husbands. When couples agree on what money symbolises, men tend to report greater satisfaction in their professional lives. When those beliefs clash, that sense of fulfilment often erodes, even if income levels remain unchanged.

The study was conducted in collaboration with several scholars, including Scott Dust, a professor at the Carl H. Lindner College of Business and Merchant’s academic adviser. Dust emphasised that the implications extend beyond career choice alone. While the nature of one’s job certainly affects workplace happiness, a partner’s values—and the role money plays within the relationship—can be just as influential.

In practical terms, the research highlights how deeply intertwined financial beliefs and emotional wellbeing can be in modern dual-income relationships. Success at work is not evaluated in isolation but filtered through the shared values and expectations partners bring to their financial lives together.

More information: Sharmeen Merchant et al, Gender Differences on Dual-Earners’ Money as Achievement Congruence and Needs-Supplies Fit, Journal of Business and Psychology. DOI: 10.1007/s10869-025-10094-9

Journal information: Journal of Business and Psychology Provided by University of Cincinnati

Climate-Smart Nutrition Doesn’t Have to Cost More

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Eating a healthy diet can reduce food costs and lower greenhouse gas emissions compared with what most people currently eat, according to a new global study examining the links between food prices, nutrition, and climate impact. The research shows that environmentally responsible eating does not necessarily require higher spending or specialised products, challenging a common assumption about sustainable diets.

The study was led by researchers at Tufts University’s Friedman School of Nutrition Science and Policy. They aimed to identify which locally available foods could meet basic nutritional requirements at the lowest possible cost and with the smallest climate footprint. These optimised diets were then compared with what people typically consume in different countries. The findings, recently published in Nature Food, suggest that every day, lower-cost food choices often align more closely with both health and climate goals than expected.

Using global dietary benchmarks known as Healthy Diet Basket targets—widely employed by United Nations agencies and national governments—the researchers modelled diets that satisfied nutritional needs while minimising either greenhouse gas emissions or monetary cost. They then contrasted these idealised diets with those based on the most commonly consumed foods. Across most food groups, less expensive items tended to generate fewer emissions, mainly because they require less energy, fertiliser, and land-use change during production.

The analysis drew on three primary sources of data for each food item: its price and availability in individual countries, its share of national food supplies, and its average greenhouse gas emissions. For each country, five dietary patterns were modelled, including the healthiest possible diet with the lowest emissions, the most nutritious diet at the lowest cost, and three diets reflecting typical consumption patterns.

In 2021, a healthy diet based on the most commonly eaten foods produced an average of 2.44 kilograms of CO₂-equivalent emissions per person per day and cost about $9.96 globally. By contrast, a diet designed specifically to minimise climate impact produced just 0.67 kilograms of emissions for $6.95. A diet focused solely on minimising cost, even less—$3.68 per day—while producing 1.65 kilograms of emissions. A blended approach, combining commonly eaten foods with lower-cost healthy alternatives, sat between these extremes, remaining significantly cheaper and less polluting than typical diets.

The researchers found that, in general, choosing cheaper options within each food group is an effective way to reduce dietary emissions. However, there are essential exceptions at the very lowest-cost and lowest-emission extremes. Among animal-source foods, milk is often the cheapest option and produces far fewer emissions than beef and other meats. Still, certain fish, such as sardines and mackerel, can offer even lower emissions at slightly higher cost. Among starchy staples, rice is frequently the least expensive option but has higher emissions than wheat or maize because methane is released from flooded rice paddies.

Overall, the study highlights a potential win–win for consumers and policymakers alike: healthier, more affordable, and more climate-friendly diets. While cutting emissions in other sectors often requires costly investments, everyday food choices can deliver environmental benefits simply by prioritising value for money—so long as key trade-offs are understood.

More information: Yan Bai et al, Environmental impacts and monetary costs of healthy diets worldwide, Nature Food. DOI: 10.1038/s43016-025-01270-4

Journal information: Nature Food Provided by Tufts University

Why taxing property during booms and subsidising it in slumps could protect housing markets

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Financial crises may be intensified by the way mortgage lending and housing taxes are currently structured, according to new academic research. The study suggests that existing systems can amplify economic downturns rather than soften them, particularly when falling house prices interact with strict credit conditions. The researchers argue that policymakers should reconsider how housing is taxed across the economic cycle, proposing higher taxes on housing purchases during periods of strong growth alongside temporary subsidies during recessions.

The research, published in a leading economics journal, warns that without carefully designed intervention, downturns can trigger a damaging feedback loop. As house prices fall, highly indebted households are often forced to sell their homes at depressed values. These so-called fire sales then push prices even lower, weakening household balance sheets and tightening borrowing conditions across the economy. This dynamic, the study argues, deepens recessions unnecessarily and spreads financial stress from borrowers to the broader economy.

At the heart of the analysis is the claim that today’s credit and tax arrangements leave the economy overly exposed to sudden shocks. When housing serves as collateral for borrowing, even modest price declines can sharply reduce access to credit. Families facing job losses or income reductions during a downturn are therefore hit twice: first by the shock itself, and then by collapsing house prices that restrict their ability to smooth consumption or refinance debt. The study finds that this vulnerability is not inevitable, but rather the result of policy choices that fail to respond adequately to different phases of the economic cycle.

The authors emphasise that the most effective interventions occur after a downturn has begun, rather than in attempts to curb borrowing in advance. By cushioning falls in house prices during recessions, governments can protect households at their most fragile moment. This protection, in turn, helps stabilise the broader economy by preventing sharp contractions in credit and spending. The research suggests that relatively modest, temporary housing subsidies introduced during downturns can have outsized benefits compared with more restrictive policies applied during boom periods.

To reach these conclusions, the study employed a quantitative economic model designed to replicate key features of real-world housing and credit markets. Thousands of simulated economies were generated in which house prices determined how much households could borrow. The researchers examined how taxing housing purchases during high-productivity periods and subsidising them during low-productivity periods affected prices, credit availability, and consumption. The model distinguished between two types of households — borrowers and savers — and tracked how each group responded to different policy regimes.

The results show that taxing housing in good times does little to restrain excessive borrowing. By contrast, subsidising housing investment during recessions raises house prices precisely when the financial system is most vulnerable. This support helps prevent forced sales and sharp price collapses, easing the collateral constraints that typically choke off credit access during downturns. Importantly, the study finds that both borrowers and savers benefit in the long run. More stable housing markets improve credit conditions, strengthen household balance sheets, and reduce the lasting economic damage caused by crises.

Overall, the research challenges the conventional emphasis on pre-emptive restrictions and instead argues for targeted, state-contingent intervention. By focusing on recovery rather than restraint, policymakers could protect living standards, limit financial instability, and reduce the depth and duration of future recessions.

More information: Matteo Iacoviello et al, Optimal credit market policy, Journal of Economic Dynamics and Control. DOI: 10.1016/j.jedc.2025.105223

Journal information: Journal of Economic Dynamics and Control Provided by University of Surrey

Companies with Strong Sustainability Goals Benefit More from Open Auditing Practices

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Companies with strong environmental, social and governance (ESG) track records tend to perform better than their peers after being required to adopt stricter auditing standards, according to a new study from researchers at Nagoya University. The research is the first to directly examine the relationship between companies’ sustainability practices and the introduction of “key audit matters” (KAMs), a transparency measure designed to give investors clearer insight into corporate risks.

ESG refers to the environmental, social and governance criteria increasingly used to assess how responsibly companies operate. Strong ESG performance signals long-term commitment to sustainability, ethical oversight and stakeholder engagement, qualities that investors often associate with higher organisational quality. As global markets place growing emphasis on transparency and accountability, ESG performance has become an essential factor shaping how firms are evaluated.

In 2015, the International Auditing and Assurance Standards Board recommended that auditors disclose KAMs, defined as the most significant issues identified during an audit. The goal was to improve the usefulness of audit reports by helping investors better understand a firm’s financial and operational risks. In Japan, companies with high ESG scores generally paid higher audit and consulting fees after KAMs were introduced, reflecting more intensive scrutiny. However, these same firms also outperformed their peers in both accounting and market-based measures.

Co-author Hu Dan Semba, Associate Professor at Nagoya University’s Graduate School of Economics, emphasised that transparency alone does not create trust. Paying for more expensive audits does not automatically enhance credibility, he explained. Still, when firms have already demonstrated a genuine commitment to sustainability, transparent auditing strengthens that signal and is rewarded by the market.

Japan offered an obvious setting to study these dynamics. Publicly listed firms were allowed to voluntarily adopt KAM reporting in fiscal year 2019, one year before it became mandatory in 2020. This created what researchers describe as a natural experiment, enabling them to observe which firms chose early adoption, what it cost them and how they performed afterwards. The research team analysed data from 1,065 Japanese firms between 2009 and 2023.

Only twenty-four non-financial firms opted for early adoption, but those that did were significantly more likely to have strong ESG scores. According to the researchers, volunteering to disclose KAMs before it was required suggested confidence in the underlying corporate quality. These companies did incur higher audit and non-audit fees during the early phase, mainly due to more rigorous examinations and additional advisory work to address issues uncovered by auditors.

The study also points to cultural factors that may help explain this behaviour. Drawing on scholarship on Japanese business traditions, the authors suggest that voluntary transparency aligns with the concept of “sanpo-yoshi”, a principle developed by Omi merchants that stresses mutual benefit for sellers, buyers and society. Notably, firms that adopted KAMs early paid lower audit fees once disclosure became mandatory, suggesting that early transparency enabled them to identify and manage risks more efficiently.

From 2020 to 2023, companies with higher ESG scores showed stronger accounting performance and market returns following the implementation of mandatory KAM. While transparency appeared to improve overall firm performance, the effect was clearly more substantial for sustainability-focused firms. As KAM reporting becomes more widespread internationally, the findings suggest that companies with established ESG practices are best positioned to benefit from stricter transparency requirements. The results were published in the Managerial Auditing Journal.

More information: Maretno Agus Harjoto et al, Sustainability and financial disclosure: role of ESG in key audit matters adoption, Managerial Auditing Journal. DOI: 10.1108/MAJ-01-2025-4663

Journal information: Managerial Auditing Journal Provided by Nagoya University