Opportunistic behavior and discrimination in the mexican solar photovoltaic market

An audit experiment

Bibliographic Data

ID6460394
AuthorsHéctor H Sandoval (University of Florida), Héctor Sandoval, Pedro Hancevic (0000-0003-4005-6378, Centro de Investigación y Docencia Económicas, corresponding author), Hernán Bejarano (0000-0002-9897-5425, Centro de Investigación y Docencia Económicas)
Year2025
Volume197
Pages107196-107196
Publication date2025-10-06
Open AccessYes
TypeARTICLE
VenueWorld Development (JOURNAL)
Journal identifiersISSN: 0305-750X • E-ISSN: 1873-5991
PublisherElsevier BV (PUBLISHER)
DOI10.1016/j.worlddev.2025.107196
OpenAlexW4414871380
LanguageEN
References cited45

This paper presents an empirical analysis of supply-side discrimination in the green technology market, with implications for policy optimization in emerging economies. We conduct an audit experiment using a messenger-based approach to investigate price discrimination and market behaviors in Mexico’s residential distributed solar photovoltaic (DPV) market. By using randomized fictitious customer profiles that vary by gender, socioeconomic status (SES), prior DPV knowledge, and access to external financing, we assess how these factors influence provider responses to quote requests. Our findings indicate that women and medium- to high-SES customers face significant overcharges, with combined surcharges exceeding 6% in some cases. Evidence of discriminatory practices based on product knowledge and access to financing is less robust. Oversizing of capacity by providers relative to the optimal size seems to be a common practice, although evidence of discrimination in this regard is rather weak. Discriminatory practices may reduce the cost-effectiveness and accessibility of DPV systems, ultimately hindering the impact of programs designed to promote green technology adoption. Addressing these biases is essential for improving market efficiency and enhancing the effectiveness of green technology initiatives aimed at promoting broader adoption across diverse populations. • Women and high-SES customers face price discrimination; overcharges exceed 3%. • Surcharges for medium/high-SES female customers rise above 6%. • Less robust evidence for discrimination based on prior product knowledge or external financing. • Sellers often oversize system capacity relative to the optimal net present value. • Evidence of discrimination regarding system capacity oversizing is relatively weak.

Audit · Empirical evidence · Incentive · Photovoltaic system · Price discrimination · Product (mathematics) · Socioeconomic status · Consumer Market Behavior and Pricing · Media Influence and Politics · Names, Identity, and Discrimination Research

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