Due to the low cost of energy in Iran, as one of the world’s largest oil and gas producers, any private sector investment to optimize energy consumption will lack economic reason. However, high energy consumption within Iran reduces the quantity of gas exports to other countries and the prospect of exporting electricity to Iraq. In other words, the opportunity cost of surplus gas and electricity utilized within Iran is equivalent to its global price. Therefore, government-implemented efforts to reduce energy use are economically justifiable. Among these plans is the LEDification of city roadways, which will significantly reduce electricity consumption. This paper describes in detail the economic evaluation of this plan’s implementation of a 4-year plan and a 10-year financial horizon. The results indicate the presence of an economic advantage. Additionally, the paper includes information regarding the recovery of metal scraps from obsolete light fixtures and the decrease of carbon emissions.
