Estimating Positive Externalities of Nitrogen Fixation by Pulses^§

Pulses are important food crops in India which are often neglected in cropping systems because of lower yield and fluctuating prices. However, pulses have a unique ability to fix atmospheric nitrogen which enhances soil fertility and reduces the need to use synthetic nitrogenous fertilizers. This study has quantified the positive externalities of nitrogen fixation by pulses and its positive impact on farmers’ expenses, government subsidies on fertilizers and environment because of reduced production and use of synthetic urea. It has also quantified the amount of monetary support that is needed to bring socially optimal area under pulses. International agencies concerned with environment and climate change should encourage pulse farming as a sustainable way of reducing the emission of global warming gases without affecting farm productivity. Since, pulses are majorly grown by small and marginal farmers under rainfed conditions, any support given to pulses fulfills the equity dimensions of social welfare.