Wisconsin is the second-largest dairy producer in the US, but the industry is facing challenges, including climate change and changes in dietary patterns. US climate policies, including carbon pricing, are complex due to variations between states and the federal government. While the US aims for zero emissions by 2050, different states may have differing policies. Wisconsin lacks carbon pricing, but the Wisconsin Climate Action Report and the Senate Bill 70 on WI’s budget, call for a thorough analysis of carbon pricing within the state. Additionally, there is a societal shift towards plant-based diets, partly to mitigate greenhouse gas emissions. The consequences of dietary shifts on the dairy industry depend on the policies implemented by governments. Therefore, Hamid’s proposal aims to explore two key questions: 1) How does state-level carbon pricing heterogeneity compared to national uniform carbon pricing impact the dairy industry? 2) How do dietary changes affect dairy production considering various climate policies? The study utilizes a subnational version of the Global Change Analysis Model (GCAM) to address the questions. Multiple scenarios will be designed to project the combined impact of policies and dietary patterns on the dairy industry from 2020 to 2050. The results will provide insights into the alternative future of the dairy industry and the mechanisms driving changes at both the national and state levels, aiding institutional and individual climate mitigation plans, decision-making, and public advocacy for sustainable policies.