Source: IPCC, 2007b. Following the Pigouvian paradigm presented in Chapter 1, such a carbon price would be most straightforwardly administered in the form of a carbon tax imposed on the emitting producers. The carbon tax would then render carbon-intensive technology more expensive, would lead to a reduction of fossil fuel-based electricity in the power mix and, ultimately, to a reduction of carbon emissions themselves. In all fairness, it must be added that the costs for gas-fired power generation are hugely dependent on the location and that its LCOE can fall as low as USD 60 per MWh in the United States.