Climate change mitigation through efficiency improvements in street lighting in Mexico: overcoming political challenges to enhance economic efficiency and environmental equilibrium

Abstract

In this article we describe a case study of policy challenges for the implementation of a public policy which generates social, economic and environmental benefits simultaneously and thus achieving climate change mitigation. Specifically, we analyze the creation of the National Energy Efficiency Project for Municipal Street Lighting in Mexico. We present a technical and economic analysis which identifies profitable investment opportunities yielding an average Internal Rate of Return (IRR) of 63% and a capture of 15 929 carbon dioxide equivalent tons. We describe the obstacles faced by the stakeholders in the implementation of the project as well as its latest performance. This article presents evidence of how it is possible to implement measures contributing to sustainable development by considering elements of social, economic and environmental efficiency while coping with its policy constraints.