The impact of a carbon tax on electricity prices depends on the amount of CO2 generated PMI-001 along with the electricity, and that depends on the type of fuel used and the efficiency ("heat rate") of the generator. At 100% efficiency, 3413 BTU = 1 kW·h.
In terms of fuel use, note from above that CO2 emissions per million BTUs (293 kW·h) range from 117.08 pounds of CO2 for natural gas and about 155 pounds of CO2 for petroleum to VCP-310 between 205 and 227 pounds of CO2 for coal, and that a tax of $100 per ton of CO2 therefore translates into a tax per million BTUs that ranges from $5.854 per million BTUs for natural gas and about $7.75 per million BTUs for petroleum to between $10.27 and $11.37 per million BTUs for VCP-101V coal. For comparison purposes: in 2005, fuel prices to electricity generators per million BTU were $7.70 for oil, $8.18 for natural gas, $1.53 for coal, and $0.48 for nuclear.[21][22] Current electricity prices are in the neighborhood of $0.08 per kW·h.
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