This study investigates when mandatory electronic waste (e-waste) regulation may unintentionally affect voluntary environmental initiatives in other domains. To study this question, we exploit the staggered passage of e-waste laws in the United States as a quasi-experiment. Using panel data at the city and facility levels, we find that mandatory e-waste laws crowd out voluntary Energy Star building certifications. However, the crowding-out effect is contingent on the payoff uncertainty of certification benefits and the cost savings possible from reducing voluntary certification efforts. These findings advance the growing strategy literature on environmental regulations by deepening our understanding of when the unintended cross-domain consequences of mandatory regulation on voluntary environmental engagement may lead to stronger adverse effects at both the extensive and intensive margins.
