Effectiveness of Upgrading Lighting and Cost-Analysis in Small-Town Oklahoma

Autumn Parrott
December 1, 2023

Submitted as coursework for PH240, Stanford University, Fall 2023

Introduction

Fig. 1: Diagram of an incandescent light bulb with the filament labeled. (Source: Wikimedia Commons)

LED bulbs have demonstrated their energy-efficient lighting capabilities; they are poised to make an outsized impact in small communities that continue to rely on incandescent bulbs. In this report, we will investigate the potential benefits of transitioning from incandescent to LED lighting in Pontotoc County Oklahoma with a focus on both energy and financial implications.

Energy Concerns

In this section, we will explore the energy consumption and environmental impact of transitioning to LED lighting by focusing on the median size of a tribe-owned casino. In the case of Ada, Oklahoma, the Chickasaws are the most prevalent tribe in the region. The following calculations are based on a 27,000-square-foot casino, which is within the typical size range of casinos owned by smaller tribes, like the Chickasaws. The calculations also assume that 1.6 watts are needed to light each square foot of the building. [1] This will allow us to examine the impact of changing lighting change.

To calculate the energy consumption for a casino, we need to consider their respective square footage, the daily usage of 10 hours per day, and the watts needed per square foot to light the building. The equations for energy consumption and cost are [2-4]

Energy Consumption (kWh/year) = Wattage of the bulbs
1000 W kW-1		 × Daily Usage (hours) × Days in a Year
Cost ($ per year) = Energy Consumption (kWh/year) × Cost of Electricity ($/kWh)

Thus we have

These calculations show that the energy consumption and costs associated with LED lighting are significantly lower than those associated with incandescent lighting. [2-4]

Environmental Impact

The transition to LED lighting has far-reaching environmental benefits. It reduces energy consumption and associated emissions, contributing to the reduction of carbon dioxide, sulfur dioxide, and nitrogen oxide emissions. [5] This results in a substantial decrease in air pollution and its negative consequences, such as global warming, acid rain, and smog. [5] In this context, the transition to LED lighting becomes an important step towards a cleaner and more sustainable environment.

Incandescents use an electrical current to generate heat and subsequently light via a thin metal filament shown in Fig. 1. Incandescents waste around 90% of their energy in this heat production process. [2] LEDs, on the other hand, which are semiconductors, convert electricity directly into light. This happens when electrons move around within the semiconductor structure from the negative to the positive layer. [2] By using this method of transforming electricity into light, LED light bulbs lose little energy to the environment, and unlike the filament in the incandescent bulb which is doomed to burn out within 1,000 hours, LEDs can last beyond 50,000 hours, making LED lights the more sustainable option by far. [6]

Cost Analysis

Let us now examing the financial aspects more carefully.

Initial Cost Difference

When considering the initial cost difference, we can estimate the number of bulbs required for the three casinos. While the precise number of bulbs would depend on various factors, let's assume a rough estimation that is illustrative of the magnitude of the initial cost difference.

Assuming an incandescent bulb costs approximately $1.96 and an LED bulb costs $6.23, we can calculate the cost difference. [7] Let's estimate that a property of 27,000 sq. ft. would need around 5,000 bulbs for adequate lighting.

Total Initial Cost Difference = Number of Bulbs × (Cost of LED Bulb - Cost of Incandescent Bulb)
= 5,000 bulbs × ($6.23 bulb-1 - $1.96 bulb-1)
= $21,350 per property

This calculation shows that the initial cost difference between buying LED lighting instead of incandescent, even for a conservative estimate, is substantial.

Annual Cost Savings

As previously calculated, transitioning to LED lighting results in significant annual cost savings in electricity expenses. The casinos could collectively save a considerable amount on their electricity bills every year. For the average casino, the annual electricity cost savings would amount to $1,014,197.76 - $152,129.66 = $862,068.10 per year. The comparison between the costs of incandescent and LED lighting in a casino of average size is illustrated to the left in Fig. 2. These savings would accumulate over the years, contributing to the financial benefits of the transition despite the initial investment in LED lighting.

Fig. 2: Illustration of the difference in cost between incandescent and LED lighting for a single year at an average casino in Pontotoc County. (Image source: A. Parrott.)

Conclusion

In conclusion, the analysis presented in this report demonstrates the considerable benefits of transitioning to LED lighting, particularly for sizeable facilities like the three largest casinos in Pontotoc County. The calculations indicate that the energy savings and cost benefits are substantial. Considering the largest municipality in the county, Ada, Oklahoma, has $500,000 in capital savings that may be allocated toward expenditures on environmental projects, the budget would be well spent on gradually switching the lighting in their largest facilities. [8] The environmental advantages, such as reduced emissions and air pollution, align with the county and city's environmental goals. Moreover, the transition to LED lighting resonates with the cultural values of the large population of indigenous people living in the area, as it demonstrates a commitment to conserving natural resources for future generations. Therefore, it is highly recommended that the county explore and implement a transition to LED lighting for substantial cost savings and environmental conservation.

© Autumn Parrott. The author warrants that the work is the author's own and that Stanford University provided no input other than typesetting and referencing guidelines. The author grants permission to copy, distribute and display this work in unaltered form, with attribution to the author, for noncommercial purposes only. All other rights, including commercial rights, are reserved to the author.

References

[1] M. K. Patterson et al., "Data Center TCO; A Comparison of High-Density and Low-Density Spaces," in Thermes 2007: Thermal Challenges in Next Generation Electronic Systems, ed. by S. V. Garimella and A. S. Fleischer (IOS Press, 2007), pp. 42-49.

[2] G. S. B. Ganandran et al., "Cost-Benefit Analysis and Emission Reduction of Energy Efficient Lighting at the Universiti Tenaga Nasional," Sci. World J. 2014, 745894 (2014).

[3] R. Michaels, "Wind Energy in Oklahoma: A Costly Solution in Search of a Problem," 1889 Institute, April 2017.

[4] N. W. Evans and J. H. Topoleski, "The Social and Economic Impact of Native American Casinos," National Bureau of Economic Research, Working Paper 9198, September 2002.

[5] M. Kampa and E. Castanas, "Human Health Effects of Air Pollution," Environ. Pollut. 151, 362 (2008).

[6] E. Rosenthal and F. Barringer, "Green Promise Seen in Switch to LED Lighting," New York Times, 29 May 09.

[7] T. G. Reames, M. A. Reiner, and M. B. Stacey, "An Incandescent Truth: Disparities in Energy-Efficient Lighting Availability and Prices in an Urban U.S. County," Appl. Energy 218, 95 (2018).

[8] B. Morriss, "A Resolution of the Board of Trustees of the ADA Public Works Authority, a Public Trust, Adopting the Operating Budget for the Fiscal Year 2022-2023," Ada Public Works Authority, Resolution No. 22-01P, June 2022.