Is A Subsidy On LED Lighting Economically Viable?

The switch to LED is not going to be easy, at least in poor and developing countries. Despite the dramatic fall in prices of LED bulbs over the past several years, they are still five to ten times more expensive than incandescent bulbs. That is not to say that LED bulbs are not a better alternative. Studies show that LED bulbs can have a lifespan of over 50,000 hours. To give this some perspective, the corresponding figure for an incandescent bulb is just 1,200 hours. In other words, if you were to run a bulb for twelve hours every day, an incandescent bulb would last for just 100 days. In comparison, the LED bulb could last well over 11 years.