The Action Mechanisms of Environmental Compensation Promoting Enterprises’ Green Development

Fushuai Wang, Gulnara Shakirova, Wenqian Zhang

2025

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DOI 10.62517/jse.202511306
Data confidence 70 medium
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Abstract

To address climate change, environmental protection and corporate operations are considered to require collaborative development. Based on the principle of environmental compensation, this study analyzes the direct and indirect mechanisms of action on enterprises' green development. The research finds that environmental compensation directly promotes enterprises' green development from multiple dimensions, including corporate reputation, sustainable concepts, and strategic management. Meanwhile, environmental compensation can indirectly facilitate the transformation of enterprises toward green development by enhancing ESG performance and promoting technological innovation.