Well there are a whole lot more sophisticated analyses out there than what I can type out. But suffice it to say that even if the US does absolutely nothing about emissions, Kyoto loses about half its effectiveness. So that's still averting a lot of future climate damage.
None of this stuff is about countries acting in their present interests since the effects of global warming will fall long after everyone alive now is dead. The point is to prevent Africa and parts of Asia from getting devastated starting around the end of the century with drought and desertification, which probably won't starve people but will set back their development a lot. Warming actually hurts the developing world, China, and India much more than it does the Annex I countries, so the Chinese and so forth are the main beneficiaries of all this. They just aren't acting in their long term interests so Europe is taking the hit for them.
Canada was undertaking emissions reductions until a few years ago and it remained one of the fastest growing developed countries. So we're talking about a slight slowdown here, not economic havoc as you put it. I agree that there are some rapid emissions cutting proposals out there that aren't that bright, but the Kyoto conditions are pretty moderate and gradual.
I'd also expect Kyoto to put more research into renewables if anything, since there's no incentive in researching these things unless you're trying to cut emissions.