Impacts of organic farming on the nitrogen balance in agricultural land of OECD countries: Evidence from panel ARDL approach

The growing concern for health and the environment among individuals is anticipated to boost the demand for organic foods. However, there is a research gap in expanding field experiment results for the impact of organic farming to the real world. This study examines the causal relationship between nitrogen balance, organic farming area, agricultural land, and Gross Domestic Product per capita in 18 Organisation for Economic Co‐operation and Development countries from 2000 to 2019. By employing panel Autoregressive Distributed Lag, we found that a 1% increase in organic farming areas is associated with a 0.054% decrease in nitrogen balance in the long run. However, we found that the nitrogen balance increased by 0.392% and 0.487% with 1% expansion of agricultural farmland and economic development in the long run, respectively. Our findings will help policymakers develop or implement soil health management practices to reduce and maintain the amount of nitrogen in the environment. In addition, environmentally friendly raising livestock practices might be another consideration to improve nitrogen balance in livestock‐intensive countries. Finally, expanding agricultural land may not be an appropriate way to solve the problems of soil and underground water contamination.