A resource-based and institutional theory-driven model of large-scale biomass-based bioethanol supply chains: An emerging economy policy perspective

Abstract

The wide-spread dependence of transportation sector on the ever-depleting and greenhouse gas emitting fossil fuels when burnt has raised considerable energy security and environmental concerns. Consequently, countries around the world have positioned biofuels as a center stage alternative to fossil fuels in their national policies to provide energy security and carbon emission control. In this regard, the paper conducts a feasibility assessment of setting-up large-scale supply chain of bioethanol (i.e., a biofuel variant) based on the regional availability of agricultural residues. Critical resources and capabilities requirements and governance attributes for bioethanol supply chains are explored using the resource-based view and institutional theory lenses. An agricultural residues (as biomass inputs) based bioethanol supply chain (BESC) model is proposed to incorporate the economic and environmental optimality considerations for an agro-climatic region. A case study of the Punjab State in India is used as an application of the proposed BESC model. Findings suggest that sustainable BESC configurations can be achieved differently for different agricultural residues. Comparative analyses, trade-off scenarios, and sustainability assessments of various agricultural residues-based BESC configurations are conducted. The policy implications of the priority areas are discussed within the bounds of India's biofuel policy.