Analyzing Economic Feasibility in Green Energy Projects: A Case Study of a Green Streetlight Project
Abstract
Green energy project proposals are often criticized for their high upfront cost and face concerns that anticipated cost savings will not materialize. An analysis showing that an initiative will benefit a given area economically will be key to securing funding and support for any city-wide infrastructure project. This paper offers a method to identify whether the benefits of green infrastructure projects justify the costs of implementing them. The Philadelphia Streetlight Improvement Project (PSIP) is used as a case study. This study conducts a thorough economic analysis of the implementation of light-emitting diode (LED) streetlight replacement projects through the lens of cost-benefit analysis.
The methods presented in this paper can be used as a framework for city agencies around the world considering similar sustainable projects. This study concludes that certain sustainable infrastructure projects are economically feasible and can provide a range of positives beyond cost savings. The key conclusions are: (i) the PSIP is economically profitable, with the project’s net present value (NPV) around $60 million; (ii) funding strategies such as serial green bonds can help spread out initial costs and decrease investor risk; and (iii) spillover benefits external to NPV calculations, including benefits to the environment and safety, boost the overall value of sustainable infrastructure.
Downloads
Published
Data Availability Statement
This research data is not available.
Issue
Section
License
Copyright (c) 2025 Intersect: The Stanford Journal of Science, Technology, and Society
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
Authors who publish with this journal agree to the following terms:- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).
