Author Archives: support

Growth vs. Green: South Africa’s Struggle Between Industrial Gains and Clean Energy Promise

A comprehensive new analysis of South Africa’s environmental footprint reveals a complex and often contradictory relationship between development and pollution. Researchers Frank Ranganai Matenda, Helper Zhou, and Mabutho Sibanda from the University of KwaZulu-Natal, alongside Asif Raihan of the National University of Malaysia, examined three decades of national data to identify the main drivers of carbon dioxide (CO₂) emissions. Covering the period from 1990 to 2020, the study explores how economic growth, global integration, and technological change are shaping environmental outcomes, while also highlighting the promise of renewable energy as a pathway towards reducing emissions.

To analyse these long-term dynamics, the researchers applied a statistical approach known as the Dynamic Ordinary Least Squares estimator, which is particularly effective for examining time-series data with evolving relationships. The model assessed the influence of five key factors: economic growth, fossil fuel consumption, renewable energy use, technological innovation measured through patent activity, and globalisation. To strengthen the credibility of their results, the team also employed additional econometric techniques, including Fully Modified Least Squares and Canonical Cointegrating Regression, ensuring consistent findings across multiple analytical methods.

The results confirm that fossil fuel dependence remains the dominant force behind rising emissions. A modest increase in fossil energy consumption was associated with a disproportionately large rise in CO₂ output, underscoring the structural reliance on carbon-intensive energy sources. Economic growth and globalisation were also linked to higher emissions, reflecting a development model in which industrial expansion and international economic activity continue to depend heavily on polluting energy inputs. These findings illustrate how progress, in its current form, is closely tied to environmental degradation.

One of the more unexpected outcomes was the positive relationship between technological innovation and emissions. Rather than reducing environmental impact, increased patent activity was associated with a rise in CO₂ output. This suggests that innovation within South Africa has not been sufficiently directed towards clean or energy-efficient technologies, but instead has supported industrial processes that remain dependent on fossil fuels. In contrast, renewable energy emerged as the only factor that consistently reduced emissions, highlighting its critical role in reshaping the country’s environmental trajectory.

The study points to a fundamental tension at the core of South Africa’s development pathway. While economic expansion and globalisation remain central policy priorities, their environmental consequences are becoming increasingly evident. The findings indicate that incremental or conventional forms of innovation are unlikely to deliver meaningful environmental gains without deliberate redirection. Achieving long-term climate targets, including ambitions for carbon neutrality, will require targeted policies that actively promote clean energy adoption and support the development of genuinely sustainable technologies.

Although the research focuses specifically on South Africa and a defined set of variables, it offers broader insights for policymakers. The authors suggest that future work could incorporate additional factors such as urbanisation, foreign investment, and agricultural productivity, as well as examine other forms of pollution. Ultimately, the study underscores the need for coordinated policy action to decouple economic growth from environmental harm. Strengthening investment in renewable energy, reducing reliance on fossil fuels, and implementing regulatory measures such as carbon pricing will be essential steps in aligning development with environmental sustainability.

More information: Frank Ranganai Matenda et al, The influence of economic growth, fossil and renewable energy, technological innovation, and globalisation on carbon dioxide emissions in South Africa, Carbon Research. DOI: 10.1007/s44246-024-00155-8

Journal information: Carbon Research Provided by Biochar Editorial Office, Shenyang Agricultural University

Prioritise Grid Readiness to Minimise the Cost of EV and V2G Expansion

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Vehicle-to-grid (V2G) chargers allow electric vehicles to function as a distributed battery network, enabling electricity to be stored and returned to the grid when needed. This capability has the potential to smooth fluctuations in demand throughout the day, for example, by supplying power during evening peaks and recharging overnight. In principle, such systems could improve efficiency for utilities while offering incentives to EV owners, such as reduced charging costs or financial compensation for supplying energy back to the grid.

However, modelling from an international team of researchers indicates that V2G alone cannot fully offset the additional strain that widespread EV adoption places on existing electricity infrastructure. Even with advanced charging technologies, current grid systems are not equipped to handle the projected growth in electricity demand. As a result, relying on V2G to delay or substitute for grid upgrades may not be sufficient or cost-effective in the long term.

The researchers instead recommend prioritising early investment in grid infrastructure, with upgrades designed to meet long-term demand projections. Their analysis suggests that planning for future electricity needs—looking as far ahead as 2050—can reduce total system costs by avoiding repeated, incremental upgrades. While V2G technology remains valuable, it is most effective when deployed alongside a grid that has already been strengthened to accommodate increased loads.

The study examined detailed data from California’s Bay Area, where EV adoption is already high. Using census data and projections, the team modelled when households are likely to adopt EVs, where charging would occur, and how factors such as rooftop solar installations and rising baseline energy demand would influence electricity use. They compared different charging strategies, ranging from basic chargers to more advanced systems capable of flexible timing and bidirectional energy flow.

Their findings highlight that infrastructure lifespans play a crucial role in determining cost efficiency. Grid components such as transformers can last up to 40 years, whereas EV chargers typically have a lifespan of about a decade. This means that delaying major grid upgrades in favour of incremental improvements can lead to higher cumulative costs, as equipment may need to be replaced or upgraded multiple times. In contrast, undertaking larger, forward-looking upgrades early can avoid these inefficiencies.

The research also underscores that the benefits of V2G increase as EV adoption and renewable energy generation expand. In areas with significant solar power, for instance, EVs can store excess energy generated during the day and release it when demand rises, reducing pressure on transmission systems. This makes V2G particularly valuable in a mature energy ecosystem, rather than as a stopgap solution during early adoption phases.

Overall, the study concludes that the most cost-effective pathway is to upgrade the grid first and introduce V2G capabilities more gradually. By initially deploying simpler, lower-cost chargers and transitioning to advanced V2G systems later, utilities can better align infrastructure investments with evolving demand. This staged approach ensures that both grid capacity and charging technology develop in tandem, maximising efficiency while minimising long-term costs.

More information: Liangcai Xu et al, Proactive grid investment enables V2G for 100% adoption of electric vehicles in urban areas, Joule. DOI: 10.1016/j.joule.2026.102393

Journal information: Joule Provided by University of Michigan

Evidence Suggests Sugary Drink Taxes Are Less Effective in Fast-Food Settings

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A new study led by Brian Elbel and Pasquale Rummo from NYU Grossman School of Medicine has found that taxes on sugary drinks may not reduce the number of beverage calories people purchase at fast-food restaurants in the United States. The findings were published on April 2 in the open-access journal PLOS Medicine.

Taxes on sugary drinks have been introduced in several U.S. cities as a public health measure aimed at reducing sugar intake and encouraging healthier choices. Previous research has shown that these taxes can lead to about a 15% drop in sugary drink sales in grocery stores. However, less is known about whether the same effect occurs in restaurant settings, where purchasing habits may differ.

To explore this, researchers analysed six years of sales data, from 2015 to 2020, covering more than 7,300 Taco Bell locations across the country. The study focused on drive-through orders, which make up a large share of fast-food transactions. The researchers compared beverage calories per transaction in 60 restaurants located in areas with sugary drink taxes to similar restaurants in areas without such taxes.

The cities included in the analysis were Albany, Cook County, Oakland, Philadelphia, and Seattle. Each of these locations has implemented a tax on sugary beverages. Their results were compared with matched restaurants in places without such policies to assess any differences in consumer behaviour.

Overall, the study found no meaningful link between sugary drink taxes and the number of beverage calories purchased per order in fast-food settings. This suggests that taxes of the current size, or taxes alone, may not be enough to change how people choose drinks when ordering fast food significantly.

The researchers suggest that the nature of fast-food purchasing may explain these findings. Customers often choose bundled meals or prioritise convenience and habit over price differences. As a result, they may be less sensitive to small price increases caused by taxes. The authors also note that the taxes in place may be too modest to influence behaviour in these settings, or that consumers respond differently in restaurants compared to grocery stores.

More information: Pasquale Rummo et al, Impact of sugary drink taxes on beverage calories purchased in a national fast food restaurant chain: A quasi-experimental study, PLOS Medicine. DOI: 10.1371/journal.pmed.1004642

Journal information: PLOS Medicine Provided by PLOS

Negative emotions on the job aren’t always harmful—empathetic leadership matters most

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During a widespread crisis, negative emotions do not simply disappear when the workday begins. Employees carry worry, fear, and uncertainty with them into their roles, shaping how they think, behave, and interact with others. For a long time, organisational research has tended to assume that these negative emotions inevitably lead to harmful outcomes at work. However, emerging evidence suggests that this assumption is too simplistic and does not fully reflect what actually happens in real-world settings.

Recent research led by David Lebel, an associate professor of business administration, challenges this conventional view. Working with doctoral researcher Jordan Sanders and Jochen Menges, Lebel examined emotional dynamics during the COVID-19 pandemic. Their findings revealed that only about half of the observed relationships between negative emotions and workplace outcomes were harmful. In many cases, negative emotions had no measurable effect, and in some situations, they were even associated with positive outcomes.

The study, published in the Journal of Occupational Health Psychology, also highlighted the crucial role of leadership in shaping these outcomes. Leaders who expressed positive emotions such as compassion, hope, and empathy were able to buffer or even reverse the negative effects typically associated with stress and uncertainty. For example, organisations whose leaders communicated genuine care and concern for employees saw stronger performance indicators during the early stages of the pandemic. Similarly, leaders in public roles who conveyed empathy and confidence were linked to better societal outcomes, including fewer adverse consequences during the crisis.

At the organisational level, employees responded positively when supervisors acknowledged emotional realities rather than ignoring them. Expressions of empathy and understanding were associated with higher levels of engagement and commitment, suggesting that people are more willing to invest in their work when they feel seen and supported. Importantly, these findings reinforce the idea that emotions are not inherently disruptive; rather, their impact depends heavily on how they are recognised and managed within a workplace context.

That said, not all emotional expressions from leaders are beneficial. The research found that when leaders openly displayed anxiety in ways that amplified organisational fear, it was linked to poorer perceptions of ethical leadership and increased reports of negative supervisory behaviours. However, there is a meaningful distinction between broadcasting anxiety and sharing it constructively. Leaders who acknowledged their own concerns in a measured and relatable way—such as expressing that they too felt uncertain—were better able to build trust and connection with their teams.

Ultimately, while negative emotions can sometimes drive short-term performance, they are not sustainable motivators. Prolonged exposure to fear, stress, or anxiety tends to result in burnout, disengagement, and declining wellbeing. Supportive organisational practices, such as flexible working arrangements and socially responsible human resource policies, can help mitigate these effects and allow employees to find greater meaning in their work. As Lebel suggests, in times of uncertainty, the goal is not to eliminate negative emotions, but to respond to them with empathy and care, recognising that they are already present and must be managed thoughtfully rather than intensified.

More information: David Lebel et al, Beyond positivity: A review of the functional outcomes of negative emotions at work, Journal of Occupational Health Psychology. DOI: 10.1037/ocp0000422

Journal information: Journal of Occupational Health Psychology Provided by University of Pittsburgh

The Unexpected Freedom of a Cancelled Meeting

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Unless you happen to work for Lumon Industries—where, like in Severance, the workday never truly ends—a cancelled meeting can feel like an unexpected gift of time, that sudden opening in your schedule often feels larger than it really is, as though the day has briefly expanded and given you room to breathe.

A study from Rutgers University, published in the Journal of the Association for Consumer Research, helps explain this phenomenon. Researchers found that when people unexpectedly gain time, it alters how long that time feels, which in turn shapes how they choose to use it. In simple terms, a free hour that appears out of nowhere does not feel like an ordinary hour.

“An hour gained feels longer than 60 minutes, and that deviation from expectation creates a unique sense of opportunity,” said Gabriela Tonietto, associate professor of marketing at Rutgers Business School and lead author of the study. Her broader research has explored time management challenges such as over-scheduling, the experience of “time famine,” and even the surprising value of having nothing to do.

To investigate further, Tonietto and colleagues from Ohio State University, the University of Toronto, and Peking University conducted seven surveys with more than 2,300 participants. In the first set of surveys, people compared unexpected free time with time that had always been available. The findings showed that gained time feels subjectively longer, likely because it is mentally contrasted with having no free time at all.

The researchers then examined how people actually use this so-called “windfall time.” Across additional surveys, participants consistently chose longer activities than they otherwise would. Whether productive or leisurely, people tended to stretch their choices—opting for a longer task, a slower coffee break, or a more relaxed use of their time simply because it felt more abundant.

The takeaway is that a sense of time abundance makes more feel possible, but it does not always lead to greater productivity. In fact, when time is freed up unexpectedly—especially at the last minute—people are more likely to drift towards leisure. So when a meeting is cancelled, it may feel like a small gift; how you use it, however, still depends on how you choose to spend that unexpected space in your day.

More information: Gabriela Tonietto et al, Gained Time Is Expanded: Examining the Psychological and Behavioral Consequences of Gaining Time, Journal of the Association for Consumer Research. DOI: 10.1086/740288

Journal information: Journal of the Association for Consumer Research Provided by Rutgers University

When Private Solutions Fall Short on Climate Change

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When dealing with climate change, focusing too much on private solutions instead of public action can create serious problems. Private measures—such as building local flood defences or protecting specific communities—may help in the short term, but they do not reduce the overall level of greenhouse gas emissions. When governments prioritise these private approaches over wider public efforts, global progress slows down. This can make climate change worse for everyone, especially for poorer countries and vulnerable populations who have fewer resources to protect themselves.

This situation is often described as the “private solution trap.” It happens when wealthier countries concentrate on protecting their own citizens instead of contributing enough to global solutions. While this may seem sensible from a national perspective, it can actually increase inequality and leave others at greater risk. In the end, this approach weakens the collective effort needed to address climate change effectively on a global scale.

An international study published in Proceedings of the National Academy of Sciences explored this issue in detail. Researchers, including those from the University of Bologna, conducted an experiment involving more than 7,500 participants from 34 different countries. The goal was to understand how people decide to use their resources when faced with the challenge of climate change.

In the study, participants were placed into small groups and asked to decide how to allocate their resources. They could choose between investing in a public solution, such as reducing emissions, or a private solution that only protects their own situation. Some participants were given more resources, representing wealthier countries, while others had fewer resources, representing poorer nations. The results showed a clear pattern: those with more resources were much more likely to invest in private solutions and less likely to support shared public efforts.

This behaviour reflects a broader issue in real life. Societies often rely on public systems—like healthcare, education, and transport—to address common challenges. However, private alternatives also exist, such as private insurance or private schools. In the context of climate change, both public and private actions are important. The key challenge is finding the right balance. If too many resources are directed towards private protection, the global problem remains unsolved.

The study also found that cultural values can influence decisions. People from countries that emphasise fairness and community were more likely to support public solutions, while those from more hierarchical societies tended to prefer private approaches. However, over time, most groups still fell into the same trap. One encouraging finding was that groups that acted quickly and worked together on public solutions were more successful overall. This suggests that coordinated global efforts—such as cooperation between countries or shared investment strategies—are essential for tackling climate change effectively.

More information: Eugene Malthouse et al, The private solution trap in collective action problems across 34 nations, Proceedings of the National Academy of Sciences. DOI: 10.1073/pnas.2504632123

Journal information: Proceedings of the National Academy of Sciences Provided by Università di Bologna

When confidence turns costly: CEOs who avoid delegating at critical moments

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A new study finds that overconfident CEOs are less likely to delegate responsibilities to their teams, particularly in complex, high-stakes settings such as major mergers and acquisitions. This reluctance can be especially consequential when transactions involve intricate negotiations, unfamiliar industries, or significant financial risk—situations where diverse expertise could strengthen decision-making.

“Organisations have only grown more complex over time, often operating across multiple countries and sectors,” says Jared Smith, co-author of the study. “As a result, it is increasingly important to bring more voices to the table. Drawing on varied expertise and experience can help companies navigate today’s complex business environment.” Delegation, he notes, is not simply a managerial preference but a strategic tool that allows CEOs to incorporate specialised knowledge while freeing up their own capacity to address broader organisational challenges.

To examine the relationship between CEO overconfidence and delegation, researchers analysed 3,690 mergers and acquisitions conducted by publicly traded firms between 2000 and 2019. The study focused on transactions valued at $50 million or more and representing at least 1% of the acquiring company’s equity. In total, these deals involved 1,634 CEOs, providing a substantial dataset for evaluating leadership behaviour in high-pressure contexts.

The researchers assessed CEO confidence using an established method based on executives’ stock option exercise patterns, which can signal overconfidence in future firm performance. Delegation, meanwhile, was measured by examining press releases, news coverage, and “background of the merger” documents submitted to the U.S. Securities and Exchange Commission. Mentions of non-executive participants in these materials were treated as evidence that responsibilities had been shared beyond the C-suite. Cross-referencing these sources helped validate whether those individuals were actively involved in the deal-making process.

The findings show that 41% of CEOs in the sample were classified as overconfident. Compared to their peers, these leaders were 10–15% less likely to delegate responsibilities during mergers and acquisitions. The tendency was even more pronounced in situations where delegation would arguably be most valuable. For instance, when companies pursued acquisitions in unfamiliar industries, overconfident CEOs were especially unlikely to involve additional expertise—despite the heightened need for specialised knowledge.

Perhaps most strikingly, the study found that as organisational complexity increased, overconfident CEOs became even less inclined to delegate. Firms with multiple business segments—where leaders face more complex information environments—saw a sharper decline in delegation among overconfident executives. This runs counter to conventional expectations that greater complexity should encourage leaders to seek broader input. While confidence remains an important leadership trait, the findings suggest that excessive confidence may limit collaboration and hinder a company’s ability to navigate complex strategic decisions.

More information: Matthew Josefy et al, Leave It to Me: Overconfident CEOs’ Lower Propensity to Delegate Acquisition Responsibility, Journal of Management Studies. DOI: 10.1111/joms.70095

Journal information: Journal of Management Studies Provided by North Carolina State University

Study Identifies Significant Fees and Competitive Challenges in Options Trading

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Could the way the options market is set up be quietly costing you far more than your stock trades? A recent study published in The Review of Financial Studies suggests that it might. The paper, titled “Payment for Order Flow and Option Internalization,” looks at how current rules in the options market allow certain firms to earn high profits while creating incentives that may not always favour everyday investors. While regulators have paid close attention to stock trading in recent years, this research argues that the more complex options market has received far less scrutiny.

One of the key findings is that brokers earn much more money from options trades than from stock trades. When a broker sends an options order to a trading firm, they receive what is called “payment for order flow.” On average, a retail options trade brings in about 40 cents per 100 shares for the broker, compared with roughly 20 cents for a similar stock trade. When you look at it another way, each dollar invested in options can generate up to ten times more revenue for a broker than a dollar invested in stocks. This creates a situation where brokers may have a financial reason to steer clients towards options trading.

This difference in earnings raises concerns about potential conflicts of interest. If brokers make significantly more from options, they may be more likely to encourage frequent or more complex options trades, even if those trades are not necessarily in the best interest of the investor. For individuals who may not fully understand the risks of options trading, this could lead to higher costs and potentially poorer financial outcomes over time.

The study also points to barriers that make it difficult for new firms to compete in the options market. A key rule gives certain firms, known as designated market makers (DMMs), the right to handle the first portion of trades they bring to an exchange. This gives them a built-in advantage, as they can trade against incoming orders without always offering the most competitive price available in the wider market. As a result, a small number of firms dominate this space.

In fact, the research shows that just two major firms control a large share of the market. Together, they hold about 60 per cent of these designated positions and handle more than 70 per cent of retail options trading orders. This level of concentration means there is less competition, which can keep costs higher for investors. Although there are systems in place, such as auctions designed to improve prices, these are not always used in ways that benefit retail traders.

All of this is happening at a time when options trading has become increasingly popular among individual investors. The authors suggest that better transparency and changes to certain market rules could help reduce costs and improve fairness. For example, requiring more detailed data reporting and adjusting exchange fees could make it easier for new competitors to enter the market. By highlighting these issues, the study offers important insights for regulators aiming to create a more balanced and investor-friendly trading environment.

More information: Thomas Ernst et al, Payment for Order Flow and Option Internalization, Review of Financial Studies. DOI: 10.1093/rfs/hhaf108

Journal information: Review of Financial Studies Provided by Carnegie Mellon University

Report Connects Legacy Emissions to Trillions in Upcoming Economic Impacts

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A new study from Stanford University finds that the future economic consequences of carbon dioxide emissions released decades ago are expected to exceed far the damage already experienced. Published on March 25 in Nature, the research assigns monetary values to the harm caused over time by emissions from both countries and major corporations. The findings highlight how past emissions continue to generate long-lasting and escalating economic costs across the globe, underscoring the enduring nature of climate-related damage.

The analysis estimates that emissions from the United States since 1990 have already resulted in more than $10 trillion in global economic losses. These impacts are widely distributed, with substantial harm observed in developing economies, including approximately $330 billion in Brazil and $500 billion in India. Notably, a significant portion of the damage—around $3 trillion—has also occurred within the United States itself, while Europe has borne roughly $1.4 trillion in losses. According to lead author Marshall Burke, U.S. emissions have had measurable negative effects on domestic economic output, although lower-income regions experience disproportionately greater impacts relative to their economic size.

The study also examines emissions linked to corporate activity, particularly those associated with Saudi Aramco, the world’s largest corporate emitter. Emissions tied to its oil production and use between 1988 and 2015 have already generated about $3 trillion in global damages by 2020. If these emissions persist in the atmosphere through the end of the century, the total damage could rise dramatically to an estimated $64 trillion. Burke emphasises that as long as carbon dioxide remains in the atmosphere, it continues to drive warming, and that warming in turn produces ongoing economic harm.

The researchers frame these impacts using the concept of “loss and damage,” which refers to the costs that cannot be prevented through emissions reductions or adaptation strategies. This idea is increasingly relevant in international climate negotiations and legal discussions around liability. Co-author Solomon Hsiang compares greenhouse gas emissions to unmanaged waste, noting that societies typically pay for waste disposal because it imposes costs on others. In contrast, the accumulated emissions in the atmosphere represent an unpaid and growing liability, with damages effectively compounding over time.

The study also explores the role of carbon removal technologies in reducing long-term costs, emphasising the importance of timing. The findings suggest that if carbon dioxide remains in the atmosphere for 25 years before being removed, approximately half of its total expected damage has already occurred. Co-author Noah Diffenbaugh explains that because warming affects economic growth cumulatively, the duration of emissions in the atmosphere is a critical factor in evaluating both past damages and the effectiveness of potential interventions.

Compared to an earlier version of the research released in 2023, the updated estimates are significantly higher due to the inclusion of delayed and persistent economic effects from warming. The researchers note that extreme heat events can have long-lasting consequences, amplifying overall damage estimates when these long-term impacts are considered. While the study incorporates key economic indicators, it does not fully capture broader consequences such as biodiversity loss, cultural displacement, or certain climate risks like sea level rise and extreme weather events. As a result, the authors describe their estimates as conservative, suggesting that the true scale of climate-related economic harm is likely even greater.

More information: Marshall Burke et al, Quantifying climate loss and damage consistent with a social cost of carbon, Nature. DOI: 10.1038/s41586-026-10272-6

Journal information: Nature Provided by Stanford University

Study Finds Foreign Direct Investment Falls Short as a Growth Solution

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Foreign direct investment (FDI) has long been regarded as a dependable driver of economic growth, often credited with creating jobs, boosting productivity, and transferring new technologies into host economies. For decades, policymakers and economists have treated it as a key mechanism for development and competitiveness in an increasingly globalised world. Yet new research suggests that this widely accepted view may be overly simplistic. Rather than delivering consistent and predictable benefits, FDI appears to operate in far more complex and uncertain ways, challenging the assumption that it can reliably serve as a universal engine of growth.

A recent study conducted by academics at the University of East London finds that FDI does not consistently generate the positive outcomes often associated with it. The research shows that its impact varies significantly depending on a range of factors, including the motivations behind investment, the economic and institutional conditions of the host country, and the specific characteristics of the industry involved. In some contexts, foreign investment can stimulate innovation and economic expansion. In others, however, it may displace local firms, widen income inequality, or contribute to long-term economic dependency. These findings suggest that FDI cannot be treated as a one-size-fits-all solution.

Drawing on more than six decades of academic literature, the study highlights the uneven and context-dependent nature of foreign investment outcomes. It underscores that simply increasing the volume of FDI is not sufficient to ensure positive results. Instead, the effectiveness of such investment hinges on alignment—between investor intent, local economic conditions, and sectoral dynamics. Where this alignment exists, FDI can enhance growth and productivity. Where it does not, the benefits may be limited or even counterproductive. This perspective calls into question longstanding economic assumptions that have tended to view FDI as broadly beneficial regardless of context.

The research also points to limitations in existing theoretical frameworks used to understand FDI. Many of these theories were developed in the context of advanced economies investing abroad and may not adequately reflect the realities of today’s global investment landscape. In particular, they struggle to explain the rising role of firms from emerging economies, which increasingly invest overseas not only to leverage existing advantages but also to acquire new capabilities and strengthen their global competitiveness. This shift complicates traditional interpretations and suggests that prevailing models may need to be revisited or expanded.

According to Kirk Chang, Professor at the Royal Docks School of Business and Law, foreign direct investment has often been oversimplified in both policy and academic discourse. He argues that it has been treated as a kind of economic cure-all, despite evidence that its success depends heavily on contextual alignment. Without a clear fit between investor motives, local conditions, and industry needs, outcomes can be uncertain and sometimes disappointing. Co-author Susan Akinwalere further emphasises that policymakers and business leaders must move beyond assumptions and focus on how well each investment aligns with national priorities, sectoral requirements, and long-term development goals.

More information: Susan Akinwalere et al, What Can Make ‘Foreign Direct Investment’ Work? Investors’ Motivation, Country Context and Industry Context All Play Their Roles, Journal of Industry Competition and Trade. DOI: 10.1007/s10842-026-00463-2

Journal information: Journal of Industry Competition and Trade Provided by University of East London

As Healthcare Modernises, Patients Struggle to Keep Up

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Patients are increasingly expected to manage large parts of their care online, whether that means speaking with a doctor through a screen, arranging appointments, renewing prescriptions, or viewing test results via digital portals. While these tools promise convenience and efficiency, they also assume a level of comfort with technology that not all patients possess. For many, what is designed to simplify care can instead become another barrier to accessing it.

However, a new study from the University of California, San Francisco, suggests that health systems are often overlooking a fundamental question: do their patients actually have the means and ability to use these digital services? Without assessing access to devices, internet connectivity, or digital literacy, organisations may be widening existing gaps rather than closing them. The shift towards digital care, while well-intentioned, risks excluding those already at a disadvantage.

The researchers gathered responses from nearly 150 clinicians and informatics leaders working in health systems across the United States during the first half of 2024. Fewer than half—just 44 per cent—reported that they routinely asked patients whether they could use digital devices. The numbers were even lower among institutions serving uninsured populations, where only about one-third carried out such checks. These findings highlight a concerning disconnect between the adoption of digital tools and the realities faced by patients.

Dr Elaine C. Khoong, an associate professor of medicine at UCSF and senior author of the study, emphasised that not everyone benefits equally from digital innovation. Those who struggle to access or use these tools are often the same individuals who already experience poorer health outcomes and limited access to care. The study, published in February in the journal JMIR Formative Research and funded by the National Institutes of Health, brings attention to how digital transformation can unintentionally reinforce health inequalities.

Drawing on her experience as both a general internist and clinical informaticist, Khoong has witnessed patients missing important medical messages simply because they were unaware they had an online account. Others received links by text or email but did not know how to open them. These seemingly small gaps in understanding can lead to missed information, delayed care, and increased frustration, particularly for those who are already navigating complex health issues.

The researchers argue that healthcare organisations should take a more proactive approach by training staff to assess patients’ digital readiness using standardised tools. They also suggest that policymakers should create stronger incentives for such assessments, integrating them into routine screenings alongside factors like housing instability, food insecurity, and domestic abuse. Yet significant barriers remain, with many respondents citing limited time and resources as major challenges. Even among those who do screen for digital access, nearly half reported lacking the support needed to help patients engage with online systems. These challenges have been compounded by recent policy changes, including the termination of the Affordable Connectivity Program in mid-2024, which had provided internet subsidies to low-income households.

More information: Jonathan J Shih et al, Screening by Health Care Systems for Barriers to Patient Engagement With Digital Health Care: Cross-Sectional Survey Study, JMIR Formative Research. DOI: 10.2196/85205

Journal information: JMIR Formative Research Provided by University of California – San Francisco

Access to Earned Wages on Demand Linked to Higher Savings and Financial Activity, Study Finds

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New research published in the Information Systems Research shows that allowing low-wage workers to access their earnings before payday can meaningfully improve how they manage their finances. The study found that when workers are able to withdraw wages as they earn them, they are more likely to save money, keep track of their finances, and plan. This approach, known as On-Demand Wage Access (OWA), is becoming increasingly common as financial technology continues to reshape how people receive and use their income.

According to the findings, workers who used OWA showed noticeable improvements in several financial habits. Monthly saving frequency rose by 3.7%, while checking financial dashboards increased by 12.9%. There was also a smaller but still important rise in setting financial goals, at 1.3%. These changes suggest that when people are not restricted by fixed pay cycles, they become more engaged with their money and more intentional about how they use it.

Many low-wage workers in the United States face ongoing challenges because they cannot easily access the money they have already earned. Expenses often arise before payday, and without enough savings or access to affordable credit, workers may feel forced to rely on high-interest payday loans or short-term borrowing. Even individuals with relatively stable finances can struggle with the gap between earning wages and actually receiving them, which can create unnecessary financial stress.

OWA platforms aim to address this issue by giving workers more control over their income. Companies such as Walmart, Uber, and DoorDash have adopted these systems, allowing employees to withdraw a portion of their earned wages at any time. The study suggests that this flexibility does more than solve short-term cash flow problems—it can also encourage better long-term financial behaviour. By having access to their earnings when needed, workers are more likely to make thoughtful financial decisions rather than reacting to immediate pressure.

To better understand these effects, researchers analysed detailed financial data from around 4,000 low-wage workers over several months. They combined this data with surveys, interviews, and experiments to build a clearer picture of how people actually use OWA. Many participants reported feeling more in control of their finances, as they no longer had to wait for fixed paydays or rely on costly alternatives. This sense of control supported more consistent saving and better financial planning overall.

However, the study also found that the benefits of OWA depend on how it is used. Workers who frequently paid extra fees for instant withdrawals did not experience the same improvements in savings or financial engagement. In these cases, the convenience of immediate access sometimes reduced the positive impact. The researchers also noted that OWA was especially helpful in areas with lower wages or limited access to banking services. In such settings, it can play an important role in improving financial inclusion, provided that the systems are designed carefully to support responsible use.

More information: Jihye Kim et al, Working Daily, Paid Monthly? Effects of On-Demand Wage Access on the Financial Engagement of Low-Wage Workers, Information Systems Research. DOI: 10.1287/isre.2023.0673

Journal information: Information Systems Research Provided by Institute for Operations Research and the Management Sciences