How relevant is ICT for transport? The emergence of low-cost open-source mapping tools; widespread cellular network coverage in developing countries; declining costs of mobile phone hardware; and increasing Internet use by public agencies have resulted in unprecedented opportunities to support transport planning and management in developing countries.
If the proven, certified technology is cheap, makes companies more profitable, and at the same time, more green, then why doesn’t every company use it?
This is the mystery that our team now faces in Guangdong Province, China, where we are leveraging a multi-million dollar grant from the Global Environment Facility to support the retrofitting of freight trucks with Smartway (and similarly) verified Green Freight technologies*. These technologies improve the fuel efficiency of trucks, and their costs are recovered through fuel savings – in some cases, in as little as six months. So, the pervasive question – if they are so cost-effective and improve the competitiveness of businesses, why aren’t these technologies used…everywhere?
It is an interesting question, because its answer points us to the broader issue of market barriers in developing countries. How do we identify these barriers, and what is that "spark" that sets market forces in motion?