Yes, but let's accept reality here.
People (myself included) are not going to become vegans or eat bugs or some shit.
You can create incentives to change through sin taxes but a much better way (on this problem at least) is through technological development in the private sector. It will be a long, arduous process, but we'll eventually have healthy, synthetic meat that tastes amazing without butchering an animal and comes with a lower carbon footprint.
Sin taxes and carbon taxes don't work. They are simply government revenue streams and sold to the stupid as encouragement to reduce. If everybody actually quit smoking, or using gas, the governments would go broke.
The technological development is a good approach for most problems. For this particular one, I think we are years away from a synthetic meat that actually tastes like meat. Once achieved, I think you will have a similar kerfuffle as you have with GMO products now. People won't want them.
In the short term, I think we should be encouraging more humane ways to transport and kill animals as will as keep them. I think most farms already follow acceptable practices. There are some that do not and they should be penalized.
I think the lunitic fringe that seems to be gaining populous power now won't accept anything less than radical veganism. They seem incensed that somebody will make a different choice than them. You see it on subway ads now. There is really no reason to advertise for veganism. It should be personal choice. Why does it matter if somebody else is or is not a vegan?