Earlier quoted context omitted.
If you have a nuclear reactor or extensive solar panels, you may just as well use it to split CO2 into O2 and CO (monoxide gas can also burned as fuel). Plant photosynthesis is rather inefficient if your goal is a breathable atmosphere. If the goal is biomass for food, then just call up Monsanto for a few space-dense crops. It would probably easier to oversize the powerplant (to generate oxygen, growlights, melt wate…
If you burn CO as fuel you are producing CO2 back.
CO + O2 fuel would make more sense on Venus, where water would be more scarce (water is present in thin clouds of sulphuric acid in about 25% concentration). The surface, however, is another business.
More on Venus (a surprisingly appealing place to go): http://www.space.com/5653-cloud-cities-venus.html
And a story by Geoffrey Landis http://www.asimovs.com/2010_09/exc_story1.shtml