From the WSJ Energy Blog:
The Guardian reported yesterday on a new study (subscription required) by consulting firm McKinsey estimating it could cost €1.1 trillion (about $1.5 trillion) to reach the European Union’s goal of cutting greenhouse gas emissions by 20% by 2020. Reaching the goal is possible, McKinsey says, but the political challenge will be “immense.”
To put that estimated price tag in perspective: the €1.1 trillion is over 14 years. That’s €60 billion to €80 billion per year, or $78 billion to $106 billion per year, which is about 0.7% of the EU’s nominal annual GDP of $13.5 trillion dollars. The EU economy grew about 2.8% last year. So an anti-global-warming bill of the sort McKinsey is talking about would mean an appreciable drag on growth.
