source ipcc b following the pigouvian paradigm presented in chapter 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 carbonintensive technology more expensive would lead to a reduction of fossil fuelbased 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 gasfired power generation are hugely dependent on the location and that its lcoe can fall as low as usd per mwh in the united states