Thermal management is an important issue for light emitting diodes’ utilization. For high power light emitting diode (LED), active heat dissipation method plays a vital role. As a new cooling device, thermoelectric cooler (TEC) is applied in LED packaging for the precisely temperature controlled advantage. In order to evaluate the thermal performance of the TEC packaging designs in LED, experimental measurement is used to assess the chip’s junction temperature of three different cooling models, which include the heatsink model, the heatsink and fan model and the TEC, heatsink and fan model. Based on the research, it is better to apply TEC cooling methods with the power dissipation of LED less than 35 W and the wind speed is 3.6 m/s. However, the power dissipation of TEC itself plays a vital role of the total power dissipation of LED packaging. The results of economic analysis shows that the LED integrated with TEC package achieves 22.34% and 44.73% electric energy saving under the condition of 20 W and 30 W power dissipation of the LED chip contrasts to the fluorescent lamp, but sacrifices 2.71% electric power under the condition of 10 W power dissipation of the LED chip.