Effects of Organic Equivalence Agreements on Organic Production: Evidence from the Synthetic Control Method

Abstract

The effects of organic equivalence agreements (OEA) on organic export value have been studied; however, their effect on organic production is yet to be investigated. This study examines the effect of the European Union’s (EU) OEAs on the organic land share of partner exporting countries. Employing the synthetic control method, this study provides evidence that the EU’s OEAs have positive effects on organic land shares of exporting countries. Additionally, the duration of the time lag following the intervention of OEAs varied across countries.