Green well-being: a study on the impact of ESG perception on subjective well-being

Enhancing residents’ subjective well-being (SWB) is a central objective of sustainable development. Using four waves of data from the China Family Panel Studies (CFPS) covering 2016–2022, this study introduces an innovative framework to examine the impact of Environmental, Social, and Governance perception (ESGP) on SWB. Employing a two-way fixed effects model, the analysis reveals a significant positive association between ESGP and SWB, which remains robust across multiple checks. The results further indicate that ESGP improves SWB primarily through two mediating mechanisms: enhancing perceived social fairness and increasing satisfaction with government performance. While outdoor physical activity exerts a significant positive influence on SWB, it does not function as a key mediator in the ESGP–SWB linkage. Heterogeneity analysis shows that age does not significantly moderate the ESGP–SWB relationship, whereas urban residents exhibit stronger effects than their rural counterparts. At the regional level, the influence of ESGP is most pronounced in economically advanced areas, following the order: eastern > central > western > northeastern regions. Overall, this study contributes to the literature by extending knowledge on the determinants of well-being and providing empirical evidence on how residents shape their happiness through perceptions of environmental, social, and governance conditions.