Urbanization and the Change of Fertilizer Use Intensity for Agricultural Production in Henan Province

China’s urbanization has resulted in significant changes in agricultural land use. However, understanding of the linkages between urbanization and fertilizer use intensity is limited. Using county-level panel data for Henan Province, 1995–2008 and panel econometric models, we investigate the impact of urbanization and other socioeconomic factors on fertilizer use intensity, with a focus on the two key processes related to urbanization—shrinking agricultural land area and increasing urban wages. Our results show that declining agricultural land per capita is associated with greater fertilizer use intensity. Urban wages is positively correlated with fertilizer use intensity. We also find that GDP per capita and per capita expenditure of government for agriculture both positively contribute to the increase of fertilizer use intensity, which is consistent with expectations. Our results imply that other than land conversion, urbanization contains some positive influences on land use sustainability. However, on the other hand, urbanization contributes to agriculture-based environmental pollution by increasing the level of fertilizer use in agricultural production.