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Measuring externalities of energy efficiency investments using subjective well-being data: The case of LED streetlights

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  • Jones, Benjamin A.

Abstract

Outdoor streetlights are among the highest recurring energy-related expenses faced by municipalities. As a cost-savings measure, many cities have recently made large investments in energy efficient light emitting diode (LED) streetlights. Most LED streetlights produce a different wavelength of light that is often brighter than that produced by existing lights, which has led to high-profile debates on their impacts to the environment, human health, crime, and transportation safety. However, there is a lack of credible empirical evidence on the direction and magnitude of LED streetlight externalities, including their impacts to subjective well-being. To address this knowledge gap, we investigate local externalities of investments in LED streetlights across the 100 largest US counties by population using subjective well-being data from the US CDC Behavioral Risk Factor Surveillance System over 2005–2010. Difference-in-differences results suggest that LED retrofits generate significant positive well-being impacts, varying by respondent demographic characteristics and the number of streetlights replaced. On average, installing LED streetlights generates an externality equivalent to a $477 (6.9%) increase in per capita monthly household income.

Suggested Citation

  • Jones, Benjamin A., 2018. "Measuring externalities of energy efficiency investments using subjective well-being data: The case of LED streetlights," Resource and Energy Economics, Elsevier, vol. 52(C), pages 18-32.
    • Handle: RePEc:eee:resene:v:52:y:2018:i:c:p:18-32
    DOI: 10.1016/j.reseneeco.2017.12.002
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    Cited by:

    1. Thi Phuoc Lai Nguyen & Antonio Peña-García, 2019. "Users’ Awareness, Attitudes, and Perceptions of Health Risks Associated with Excessive Lighting in Night Markets: Policy Implications for Sustainable Development," Sustainability, MDPI, vol. 11(21), pages 1-14, November.
    2. Jones, Benjamin A., 2021. "Planting urban trees to improve quality of life? The life satisfaction impacts of urban afforestation," Forest Policy and Economics, Elsevier, vol. 125(C).
    3. Dietrich, Stephan & Nichols, Stafford, 2023. "More than a feeling," MERIT Working Papers 2023-005, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    4. Agustín Castillo-Martínez & Antonio Peña-García, 2021. "Influence of Groves on Daylight Conditions and Visual Performance of Users of Urban Civil Infrastructures," Sustainability, MDPI, vol. 13(22), pages 1-9, November.

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    More about this item

    Keywords

    LED streetlights; Energy efficiency; Subjective well-being; Externalities;
    All these keywords.

    JEL classification:

    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation

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