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On the basis of the "Pilot System of the Ecological Damage Compensation" launched in 2015 and a research sample of listed companies in China's heavy pollution industry from 2014 to 2017, this paper uses a difference-in-differences model to empirically evaluate the impact of the damage compensation system on corporate environmental investment, as well as the moderating effect of market degree and firm ownership. The result shows that the implementation of the damage compensation system significantly promotes corporate environmental inves
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