Boulder Passes Carbon Tax

Voters in a Colorado university town nestled in the foothills of the Rocky Mountains have passed the country’s first municipal carbon tax to fight global warming.

Boulder, Colo., will charge residents and businesses the carbon tax based on how much electricity they use.

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 measure introduced in August by the City Council won with about 58 percent.

I like it, but the 0.22 cents per kilowatt hour tax seems a bit small. This looks to be more about sending a message than about having a tax that is high enough to give the market an incentive to invest in clean energy.

via MSNBC via Greg Mankiw's Blog