Would Cutting Emissions Wreck the Economy?

McKinsey & Company, a business consultancy group has published a report called "Reducing US Greenhouse Emissions: How Much at What Cost?" Reuters summarizes the report's central finding: "The United States could reduce projected 2030 emissions of greenhouse gases by between one-third to one-half at manageable costs to the economy. Its mid-range case found that cutting 3 billion tonnes of carbon dioxide equivalent from the United States by 2030 would cost an average about US$50 billion annually, or a total of US$1.1 trillion. That would represent 1.5 percent of the US$77 trillion in real investment the US economy is expected to make over the period."