I think there is a third option, factor in the externalities and treat it as a luxury. The cost we are paying for it is not currently reflected on the final price.
My grandparents and great grandparents in Greece used meat as a garnish a few times per week for dinner. The most meat they would have was at the end of the Lenten fast on Easter where they would have a big piece of lamb. Otherwise, it was the occasional smaller pieces of ground meat on top of vegetable-heavy dishes.