We combine our estimate of average total efficiency gains with actual production and cost data from the firm to calculate annual costs and benefits of LED installation. The calculations are shown in table 7. Senior management at the firm estimated that the profit gain for each percentage point gain in efficiency was 0.1875 percentage points.30 Thus, a 0.4 percentage point gain in efficiency from LED installation translates to a .075 percentage point gain in profits (or a 1.5% increase in profitability from the 5% baseline profit margin of the firm). At an approximate profit per factory per year of $500,000 (amounts in US dollars) the introduction of LED delivers productivity gains worth$7,500 per factory per year.
 Cost of implementation (one-time) Investment per bulb (e.g., bulb, wiring) $8.53 Number of bulbs replaced per factory 1200 Total cost of implementation$10,240.00 Energy savings (per year) Power consumption savings per bulb (with savings of 18 kWh per year, at a cost of about $0.1334/kWh)$2.40 Number of bulbs replaced 1,200 Total energy savings $2,880.00 Efficiency gains (per year) Average efficiency gain in percentage points from LED-induced temperature reductions 0.4000 Efficiency percentage point gain to profit percentage point gain translation 0.1875 Profit margin at baseline 5% Average revenue in USD per factory per year$10,000,000.00 Average profit in USD per factory per year $500,000.00 Total efficiency gains$7,500.00 Total net savings from LED Adoption in the first year $140.00 Total net savings from LED Adoption in the second year$10,380.00 Carbon (public) benefits from LED adoption (at $44/tC)$197.04 Carbon (public) benefits from LED adoption (at $93/tC)$416.47
 Cost of implementation (one-time) Investment per bulb (e.g., bulb, wiring) $8.53 Number of bulbs replaced per factory 1200 Total cost of implementation$10,240.00 Energy savings (per year) Power consumption savings per bulb (with savings of 18 kWh per year, at a cost of about $0.1334/kWh)$2.40 Number of bulbs replaced 1,200 Total energy savings $2,880.00 Efficiency gains (per year) Average efficiency gain in percentage points from LED-induced temperature reductions 0.4000 Efficiency percentage point gain to profit percentage point gain translation 0.1875 Profit margin at baseline 5% Average revenue in USD per factory per year$10,000,000.00 Average profit in USD per factory per year $500,000.00 Total efficiency gains$7,500.00 Total net savings from LED Adoption in the first year $140.00 Total net savings from LED Adoption in the second year$10,380.00 Carbon (public) benefits from LED adoption (at $44/tC)$197.04 Carbon (public) benefits from LED adoption (at $93/tC)$416.47