The paper considers the justification for the application of light-emitting diode (LED) technology to urban lighting. The results suggest that LEDs are convenient for architectural lighting and deserve to be considered for use in ambient lighting. The recently developed Commission Internationale de l'Eclairage (CIE) mesopic system enabled the inclusion of mesopic effects into a comprehensive technoeconomic analysis, which dealt with efficiency, maintenance and financial aspects of the use of LEDs in street and roadway lighting. It is concluded that the average energy savings when using LED instead of high-pressure sodium (HPS) luminaires amount to 19-26% for single-sided, staggered and opposite layouts, although they are frequently negligible if mesopic effects are not included. The total costs of the LED lighting solutions, even including mesopic effects, are 1.36 to 6.44 times higher than those of the comparable HPS lighting solutions. Therefore, LEDs are questionable for street and roadway lighting.