The research explores how giving subsidies to companies can help reduce pollution and keep industries competitive worldwide. By offering money to companies that invest in cleaner technology, countries can prevent pollution from moving to places with weaker regulations. The study found that providing subsidies at the beginning of the process (upstream) is more effective than giving them later (downstream). Upstream subsidies lower the cost of cleaner technology, helping both the environment and domestic companies. On the other hand, downstream subsidies can actually make technology more expensive globally and lead to more pollution elsewhere. So, supporting clean technology early on is a better strategy for fighting emissions leakage.