>See this article for an interesting analysis of combining a carbon tax with an auctioned cap and trade system.
Some hand calculations for the US give me that we could combine a $20 per metric ton carbon tax with a $400 per person refundable tax credit and be just about revenue neutral.
$20 per ton is about $0.20 per gallon of gasoline or about $0.03 per kWh for electricity from coal. Of course, other forms of electricity are less carbon-intensive.
I advocate carbon taxing not so much because of environmental concerns, but based on the economic principles behind pigovian taxing – that you should tax things that have social costs. Combined with that, you should reduce taxes on things you want more of, like wages (an alternative to a refundable tax credit is to reduce payroll tax on the first $5000 in wages).