Advanced Engineering Economics
According to the Environmental Protection Agency, the vast majority (70%) of light bulbs in the United States are still inefficient . More and more companies are converting outside lighting to state-of-the-art high efficient long lasting options such as Light-Emitting Diode (LED). Proponents of high efficiency lighting assert that upgrading older bulbs to new efficient ones will generate savings even though the installation costs may be high. Firms often compare upgrade costs and perceived benefits using different approaches and analysis methods. This project investigates one firm’s upgrade economic model, provides critical analysis, and proposes an improved model which could be used for future upgrade projects at the firm. In addition to the proposed model, three (3) different use cases are examined in an effort to better understand under what conditions lighting upgrades make the most sense.
Bitzer, Mario; Boss, Viktoria; Burchfield, David; Chaichi, Nina; Eastham, James; and Varma, Sumir, "Energy Efficient Outdoor Lighting: Case Study, Economic Analysis, Model Development, and Application" (2013). Engineering and Technology Management Student Projects. 403.