Boulder, my home town and one of the finest places to live on the planet, continues its leadership role in the carbon debate. Today, The Daily Camera reports that the Boulder City Council is debating an increase in our municipal carbon tax. Boulder’s leadership is illustrating dramatically the political and policy limits to pricing carbon as a primary means to achieve emissions reductions. Here are a few of the lessons, with excerpts taken from TDC article.

1. The carbon tax does not directly lead to reduced emissions.

In its projections of how much Boulder as a whole could cut its carbon emissions, city officials are depending on individuals to use energy more efficiently, install solar panels and drive less.

“The increase in the tax doesn’t get us to the goal,” Driskell said. “It’s everyone playing a role that gets us to the goal.”

2. So what then does the tax do?

It raises money.

3. How much?

That increase would cost the average business $70 per year, compared to $43 today, and the average residential electricity customer from today’s $11 annual rate to $18. Industrial customers, meanwhile, would see their tax payments go up from $6,300 to $7,900.

Upping the tax would increase the city’s revenue from $839,000 to $1.3 million this year, and from $798,000 to $1.6 million next year.

4. Who benefits?

Right now, the city uses its roughly $1 million annual budget on a broad range of programs mainly aimed at encouraging homeowners and businesses to cut their energy use and adopt renewable energy.

5. Who wants a piece of the action?

Tom Weis, the president of Boulder-based Wind Power solutions, said he served on the committee that successfully urged voters to pass the Climate Action Plan tax. Three years later, he said, he’s disappointed with its results.

“I’m extremely unhappy with the lack of progress in how these funds are currently being spent,” he said. “Nearly a third is expended thus far on staff and administration costs. That is not what I campaigned for. Without dramatic changes to the Climate Action Plan, I cannot support further changes to this tax.”

6. Who opposes the tax?

The Boulder Chamber of Commerce has also come out against an increase, although officials say they’re enthusiastic about the city’s Kyoto goals.

“The current economic climate is incredibly challenging and this is not a time to apply even further expense to Boulder’s businesses,” said Dan Powers, the group’s spokesman.

Boulder is indeed a leader on carbon policy, but probably not exactly in the way envisioned by our city council.