Carbon Copy: US Public Opinion on the Diffusion of Carbon Border Adjustment Mechanisms

In October 2023, the European Union officially implemented its Carbon Border Adjustment Mechanism (CBAM). This policy, which taxes carbon-intensive imports and aims to prevent carbon leakage, sets a precedent for other nations by incentivizing the global diffusion of similar carbon pricing schemes. Among the countries considering their own CBAM, the United States stands out. As both the world’s largest economy and of the top carbon emitters, US action on climate change has implications throughout the world. However, the success of a US CBAM hinges on public support. This raises the question: how does the American public perceive CBAM policies, and under what conditions will they support them? Using data from two original surveys, this paper investigates perceptions of CBAM diffusion and support for a US policy among the American public. Our findings reveal broad support for a US CBAM and expectations of further global diffusion. When considering CBAM proposals, respondents demonstrate sensitivity to both economic and geopolitical considerations. We find, for example, that large predicted price increases decrease support while endorsements from international organizations increase support. Across party lines respondents are supportive of allocating CBAM revenues to developing countries and green initiatives. This contributes to the literature on the determinants of public support for climate policies.