Benefit Value and Investment Evaluation Calculation of Street Lighting Using Real Option Analysis (ROA) Lindawati Gaffar
Universitas Pendidikan Indonesia
Abstract
The use of Light-Emitting Diode (LED) technology as street lighting is widely applied in various countries. The replacement of existing lighting to LED technology requires a high investment cost. This paper proposes two approaches to calculate the value of benefits and the cost of street lighting investment using LED illuminates. Real Option Analysis (ROA) methods are used to evaluate the value of street lighting investment in Bandung, Indonesia. The results prove that, the factor that greatly affects the change in the value of street lighting investment using LED technology is the change in the basic price of electricity, and the depreciations of LED prices are difficult to predict. This method is expected to provide new knowledge in the evaluation of investment value and the benefits of street lighting.
Keywords: Light-Emitting Diode (LED), street lighting, benefit value, invesment evaluation, Real Option Analysis (ROA).
