Hi Mprime!
I use it on my CD's (and it must not be exclusively green, black works also) with positive results.
As far as i know it has to do with absorbing unwanted light reflections of the laser beam. Less (of these unwanted) light reflections through the Compact Disc and the Laser can do it job better - to (over)simplify things. It actually sounds pretty logical to me and "explains" the sonic gain. I've also seen article's that support this...
Best regards!