You're right, of course. But people want to be convenient. And that's not necessarily a bad thing. If the most convenient path is one that funds "unseen" human misery and climate catastrophe, that's still gonna be the path a lot of people are gonna take. Especially if it results in the lowest costs. With the majority of people earning little money, the effect is gonna be predictable.
"Demand" is a very sketchy concept. People are gonna want what they can easily get.
So the best solution is to penalize the negative production chains and reward the positives.