Carbon Tax Comes To The U.S.

Boulder, Colo., will charge residents and businesses the carbon tax based on how much electricity they use. Most electricity in Boulder is generated at plants that use coal, which produces more of the main greenhouse gas carbon dioxide, than natural gas or oil....Residents that choose to purchase wind power will not be assessed the tax."

"The Boulder tax will raise average home bills $1.33 per month and businesses will pay an extra $3.80 per month, according to the town. The tax will generate about $1 million for the city annually. Utility Xcel Energy will collect the tax."

"The money will fund energy audits for homes and businesses and visits by energy experts to advise homeowners how to save energy through means such as energy efficient lighting and insulation."

Sarah Van Pelt, Boulder's environmental sustainability coordinator, said "electricity customers, many of whom live in older, drafty homes, would eventually save money through the efficiency adjustments."

"We really didn't think of the tax as a stick approach," she said.