Impact of e-waste regulations on firms' R&D and marketing expenditures: Insights for a circular economy

Ashutosh Singh, Ankit Mehrotra, Rsha Alghafes and Jasmine Mohsen

Technological Forecasting and Social Change, 2025, vol. 220, issue C

Abstract: Shorter product lifecycles and rising consumer demand drive the rapid expansion of electronic garbage, or e-waste, presenting environmental and public health issues. Governments worldwide have implemented e-waste recycling regulations to control the collection, recycling, and disposal of electronic trash. These regulations are intended to reduce harmful pollution, preserve resources, and promote a circular economy. However, firms associated with the electronic products industry have to limit the resource allocation on long-term strategies due to compliance with these e-waste regulations. We investigate the impact of e-waste regulations on the R&D and marketing expenditures of firms producing or selling electronic products. Using Standard Industrial Classification codes to identify industries linked to electronic equipment, this study examines the effects of state-level e-waste legislation in the U.S. on business practices, with a particular emphasis on R&D and marketing expenditures. We examine changes in businesses impacted by e-waste regulations compared to those in states with no regulations, using a difference-in-differences methodology using a 30-year dataset (1993–2023). The results highlight trade-offs between satisfying regulatory requirements and promoting innovation, showing that e-waste regulations result in lower R&D and marketing expenditures. These findings are validated by robustness testing that uses bootstrapping and extended DID. Our research has several theoretical and practical recommendations.

Keywords: E-waste policies; R&D expenditures; Marketing expenditures; Circular economy (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:tefoso:v:220:y:2025:i:c:s0040162525003373

DOI: 10.1016/j.techfore.2025.124306

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