Both types of lamps are more efficient than the previously used incandescent bulb. But LEDs, have greatly reduced in cost and have greatly reduced the amount of electricity needed to illuminate the same space. For example, a 100 watt incandescent bulb can be replaced by an LED that says its equal to a 100 watt bulb. But the amount of electricity used by the LED is only 20 watts. So the wattage is lowered by 80%, and the electricity that you are being charged for is this lamp is now greatly reduced. So, despite a higher purchase cost, LEDs save money long term.