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Background
Environmentally friendly green technologies are implemented by a growing number of countries and companies, aiming to solve the problem of waste disposal, reduce environmental pollution, and promote alternative energy. As per the estimates of Mordor Intelligence (2021, para. 2), “global energy consumption is expected to increase by 28 percent by 2040 as compared to 2015,” which emphasizes the need for renewable and sustainable energy sources to meet the growing demand for fuel. One of the main trends in the development of agro-industrial regions is the search for the best available technologies for processing biomass waste through methane digestion to produce biogas (Jeswani, Chilvers, and Azapagic, 2020). In particular, biofuel refers to fuel made from biomass and waste products of organisms or organic industrial waste and includes bioethanol and biodiesel as two of the most common types (Saifuddin, Refal, and Kumaran, 2017). The use of bio-based fuel products contributes to environmental sustainability and creates value in numerous sectors. In terms of environmental sustainability, it reduces the usage of fossil fuels. It increases the values of different sectors since they will be incorporating the interest of society.
The Problem to be Investigated
The primary problem to be investigated within the scope of this research is establishing the effects of advanced biofuels on market demand for bio-economic development in the United States. The significance of this subject is that it discusses bio-energy with regard to the current global sustainability trends. In particular, according to Collotta et al. (2019), reducing anthropogenic GHG emissions is a critical objective across multiple sectors to alleviate climate change. Biofuels are viewed as an alternative to petroleum-based fuels, which can considerably impact the transportation industry. Furthermore, the rise of second-generation biofuels as a more complex but beneficial alternative is expected, which defines the need for exploring the barriers to such a transition and the effects of the next-generation biofuels on the market demand. As per the International Energy Agency’s report, “current advanced biofuels production [is expected to scale up] by at least 50 times to keep pace with the 2DS requirements by 2030” (European biofuels markets, no date, para. 7). Moreover, this research explores the potential shift to a self-regulated biofuels market and the contribution of second-generation bio-based fuels to this scenario.
Aims and Objectives
The aim of this dissertation is to investigate whether the development of a second-generation biofuel can assist in meeting the global demand for bio-based fuel usage. Furthermore, this research seeks to explore whether advanced biofuels can contribute to the transition from a subsidized to a self-regulated biofuels market. This dissertation elaborates on global tendencies but takes a closer look at the biofuel market in the United States.
This dissertation elaborates on the global tendencies but takes a closer look at the biofuel market in the United States.
- To evaluate the role of leadership in adopting second-generation biofuels
- To evaluate role of non-government and government employees in adopting second-generation biofuels
Initial Survey of Relevant Literature
Role of Leadership in Adapting Second-Generation Biofuel
Today’s business environment is competitive and fast-changing, and as a result, businesses have to adopt new technologies that would ensure they thrive in the future. Technological renovation in business involves more than investing in modern equipment. Innovating new machinery refers to businesses preparing their teams and fostering company cultures that welcome the digital revolution (Day and Schoemaker, 2016). Compared to first-generation biofuels, the second-generation renewable energy source (biofuel) is more effective. Considering how the current business environment is, most companies must either adapt such new mechanics or risk failing. The reason for this is that new scientific-know how generally determines the survival and competitiveness of a particular organization. To ensure that such changes occur, business leaders are a key component. They decide whether a particular business opportunity is worth the risk.
For organizations, thriving in a harsh business environment means developing adaptable, versatile procedures driven by constant communication, automation, and data. This is helpful when it comes to appreciating second-generation bio-fuels. When a business fails to follow these procedures, its survival becomes threatened. Studies indicate that in the next 10 years, roughly 40% of firms on the Standard and Poor’s (S & P) 500 list will cease operations (Day and Schoemaker, 2016). The reason for this is technological changes, which are primarily driven by the human aspects of the business. When businesses neglect the human element of the business, it may be detrimental to their firms’ operations. Additionally, if the mechanical aspect of the business is not combined with the leadership characteristics of an organization, the result could negatively impact the business.
Second-generation biofuels are an essential factor when it comes to the sustainability of an organization. This is because they attract skilled and better employees that would improve the company. To ensure that there is the usage of these advanced biofuels, business leaders from around the world must discuss measures that necessitate the adoption of such technologies. Recently, meetings on renewable energy adoption have been done by business leaders from Joule Unlimited and Algenol (De Cian and Sue Wing, 2017). One factor that was agreed upon was that there is a need to strengthen the openness of business leaders to a technological revolution. Accepting modern machinery requires new ways of thinking because this determines an individual’s willingness to incorporate second-generation biofuels in business.
Embracing a new mindset and changing how traditional business operates is the most challenging part of the business. However, this is where business leaders are vital since they can shape an organization’s culture in various ways. According to research, managers who lead by example have a higher probability of successfully incorporating new technologies such as second-generation biofuels (Day and Schoemaker, 2016). For organizations to appropriate modern mechanical advancements, leaders must first support the initiative. Firms need to ensure that every member of the organization accepts the changes. To do so, leaders must demonstrate that the alterations are not just investments but also initiatives that would help the organization as a whole. Thus, it is the role of a business leader to ensure that the incorporation of second-generation biofuels does not undermine employees’ roles. Leaders have to create a business culture where both the human resource and the technological changes work seamlessly.
There are various approaches to studying business leadership or management. Di Fabio and Peiró (2018) consider the transformational or charismatic leadership and the trait approach as the two primary research methods to the leadership concept. The trait leadership approach focuses on the personal elements of successful leaders. The leadership style has mainly been perfected in the psychological field; however, it has become useful in business. The technique takes into account the personal traits of a person and their capacity to think innovatively to evaluate the willingness to incorporate new technology. Progressive-thinking leaders have a higher affinity to include second-generation biofuels in their businesses. Currently, over 90% of businesses around the world use non-renewable sources of energy, especially manufacturing industries (Iqbal and Ahmad, 2020). Trait leadership helps managers to develop current methods of including second-generation biofuel in business.
Charismatic or transformational leaders are vital in a situation where an organization needs to incorporate newer sources of energy for the business. In addition to their charisma, transformational managers are curious about their environment. According to research, intelligence is one of the key factors a manager should have; however, it is their level of curiosity that drives them to initiate change (Di Fabio and Peiró, 2018). After identifying an opportunity, these managers conduct further investigations to excavate new information. Together with their team of advisers, these leaders make decisions from an informed point of view. In this case, the leader would have found out how essential shifting from the use of non-renewable fuel to utilizing second-generation biofuels is. Because their employees trust them, they can transform an organization’s manufacturing process into one that is sustainable in terms of environmental conservation.
Transformational leaders are further influential when it comes to adopting new technologies since they are communicative. The current business environment is constantly changing and requires people with effective communication skills. According to research, charismatic leaders comprehend how immediate business environmental threats can affect development (Iqbal and Ahmad, 2020). Since they can effectively articulate the goal of an organization, they can structure their ideas in the context of the organization’s shared objective and success. Furthermore, these managers can communicate solutions explicitly by defining the problem. In this case, the problem is how the business will survive in the future when the environment is depleted. Currently, most businesses are subscribing to the fact that they need to acquire a sustainable status. Biofuels provide a solution to this problem, and transformational leaders play an important role in ensuring organizations incorporate their usage.
Impact of Employees on Second-Generation Biofuels Adoption
In an organizational situation, introducing new tools and technology can be a positively influential aspect. Research states that modern tools and equipment can boost sales, productivity and increase profit for the organization (Iqbal and Ahmad, 2020). However, the process of influencing every employee may pose a challenge. Additionally, businesses must incorporate renewable energy technologies to ensure that they thrive in the future. Nevertheless, studies show that 63% of leaders are of the view that the rate of adoption of these modern types of machinery occurs at a slower rate (Pureza and Lee, 2020). Furthermore, this unhurried rate of technology adoption can be attributed to poor communication and a lack of urgency within the business organization. Workers need to understand the reason behind the changes (second-generation biofuels) and why they are more effective compared to the previous ones (first-generation biofuels). The function of a manager, in this case, is to ensure the employee smoothly transitions, gains the technical-know how of using the technology, and understands its importance to the future of the organization and the environment as a whole.
In a business environment, different employees have various beliefs concerning particular technological practices. For instance, biofuels are a result of plant and animal materials. Some employees, especially those who are pro-animal rights, may not understand the nature of these materials. Defining the process of producing biofuels and the origin of the plant and animal raw materials would ensure the worker is convinced that the process does not harm living organisms (Neto, Guimarães, and Freire, 2018). The organization can consider introducing training programs that cover the importance of using renewable energy. Consequently, this would help in removing obstacles that relate to employees’ beliefs in the course of implementing second-generation biofuels. Thus, a leader must provide a compelling vision for what the new changes are intended to achieve. In this case, the manager can demonstrate the new rational and economic benefits for the company and the employee.
Impact of Second-Generation Biofuel on Business Development
While there are distinct environmental benefits of second-generation biofuels to several consumers and organizations, the commercial edge of being more energy-efficient and sustainable is yet to be obvious. Therefore, governments around the world should highlight the advantages of utilizing biofuels as primary sources of energy. Currently, countries are committed to reducing carbon emission by approximately 80% by 2050 as constituted in the Climate Change Act 2008 (Neto, Guimarães and Freire, 2018). Despite the advantages of renewable energy in conserving the environment, there are challenges associated with its usage. One of the challenges emanates from the inability to utilize the stored power on a large-scale basis. The reason is that most renewable energy sources utilize battery cells to store their energy. In the case of biofuels, there are insufficient plant and animal materials to ensure that the energy produced can sustain business operations as a whole. Nevertheless, compared to wind and solar, biofuels are more reliable and can match the hydroelectric power supply.
To understand how second-generation biofuels would impact business growth, it is essential to examine their advantages. One significant advantage of utilizing second-generation biofuels is that it allows an organization to save on costs. Research states that in a company situation, energy accounts for approximately 6% of the general production cost (Sinitsyn and Sinitsyna, 2021). Furthermore, studies illustrate that with the inclusion of a more efficient energy program, such organizations can save up to 35% of these energy costs within a three-year period (Pureza and Lee, 2020). Case in point, Adobe, a software solutions firm, has completed at least 170 projects on energy efficiency and as a result, have managed to save about 50% on cost related to electricity usage (Pureza and Lee, 2020). As a renewable energy, biofuels are cheaper to use, thereby reducing an organization’s operation’s cost. Furthermore, utilizing biogas or biofuels would reduce the rate of carbon dioxide emissions in the atmosphere.
The other advantage of using second-generation biofuels is related to resilience and risk management. To an increasing extent, businesses that utilize significant amounts of electricity are changing their energy source to one that is self-generated. When firms invest in second-generation biofuels, they decrease their reliance on non-renewable energy such as electricity. One of the advantages this brings is the potential for the organization to utilize reduced centrally-produced Grid power when their prices increase (IEA, 2019). In addition, during power outages, businesses can rely on self-generated power without incurring losses. In the United States, some breweries expel plant materials as waste. Extracting these wastes and using them to produce energy can be helpful for the company. In this case, the organization would be able to create the sustainable and stable market conditions it requires to operate. As a result, businesses would be able to develop the right environment for investment for sub-suppliers and suppliers of clean technology. Furthermore, this initiative encourages these business people to become independent.
Business development further includes such elements as positive public relations and corporate social responsibility. Neto, Guimarães, and Freire (2018) state that when organizations reduce their energy consumption and utilize renewable energy sources such as biofuels, they illustrate good corporate citizenship. As a section of Unilever’s Sustainable Living Plan, corporate social responsibility aims at reducing the environmental footprint of using and making products by half by 2050 (Mamadzhanov, McCluskey, and Li, 2019. Companies in the United States should consider developing policies that would enable them to replace non-renewable energy such as coal with renewable ones such as biofuels. By doing so, they will help these countries in reducing carbon emissions from firms. Focusing on achieving and setting corporate social responsibility objectives offers organizations the opportunity to generate stronger foundations for positive public relations. Furthermore, this would improve the business perception of the organization. As a result, this would attract prospectors, investors, as well as suppliers, and new clients.
The use of biofuels is an important factor when it comes to improving employee engagement. Experts demonstrate that organizations with an efficacious sense of purpose can innovate and transform better while enhancing worker satisfaction (Di Fabio and Peiró, 2018). There are several ways in which an organization’s purpose can manifest. If the purpose focuses on sustainability, then it depends on the actions of the organization to achieve its goals. An organization that centers its ideas towards sustainability helps others strengthen their supply, spur innovations, and build their brands. Research further states that energy efficiency programs enhance the morale of workers (Di Fabio and Peiró, 2018). Additionally, these efficiency programs create a more conducive business environment for employees to work in. By encouraging employees to participate in efficiency programs, their engagement rate significantly increases. As a result, this improves the whole company’s business operations. In this case, there would be increased work output, faster decision-making, and increased productivity from employees.
By using biofuels, countries such as the United States of America can secure their future economic systems. Currently, the rate of pollution as a result of poor waste disposal and usage of carbon-emitting sources of energy is high. Most organizations depend on the earth’s natural resources for their raw material. Experts warn that if organizations continue to utilize energy sources that pollute the environment, then the most business will fail in the near future. To avoid all these negative consequences, business leaders and other stakeholders must incorporate the use of biofuels in their business operations. Furthermore, compares to wind and solar energy, biofuels are much more reliable. Besides being cheaper, they reduce an organization’s dependence on electricity and coal. They further create a business environment that is conducive for employees, thereby increase their level of engagement.
Outline of the Methodology
Within this dissertation, the current state of the biofuel market and the transition to second-generation biofuel marketing and supply chain in the US is studied. Based on the objectives of this study as well as limited resources, the following research methodology was chosen. To begin with, a review of the recent literature on leadership and employee impact on biofuels adoption as well as the impact of biofuels on business development will be conducted to address the first research question and report the current state of the biofuels market in the US. This preparation will provide a foundation for a deeper understanding of the issue and factors that are critical to the industry.
To investigate the first questions, the research will utilize a systematic review of data and studies available on the impact of leadership on the adoption of biofuels. Such an approach would provide the much-needed information that would help in the smooth transition to the usage of second-generation biofuels. The second evaluation is further necessary to find out the impact of employees on adopting renewable energy. This would help the researchers develop different employee considerations that would assist in incorporating biofuels usage in plants and businesses. The third question would include studying available data on the impact of renewable data. The research would further consider the various advantages the second-generation biofuels have over first-generation biofuels.
To summarize, this study will combine desk-based analysis and quantitative and qualitative research to address the problem from various perspectives and identify whether advanced biofuels are superior to first-generation biofuels with regard to meeting the growing consumer demand for biofuels. Furthermore, the possible contribution of second-generation bio-based fuel products to the transition to the self-regulated biofuels market. Scholarly sources will be accessed through online databases, journals, and libraries for data collection and synthesis. Moreover, quantitative and qualitative research methods will be applied to conduct a socio-economic cost-benefit analysis of first- and second-generation biofuels in the US.
Literature Review
In this section, the research will critically review articles, and other relevant resources in the area of Biofuels to offer a critical evaluation and description of these works concerning the impact of second-generation biofuels. The section will primarily utilize case-based studies and theoretical models to describe the technological advancements in this field. From the studies, the qualitative literature will derive hypotheses that make assumptions of leadership, employee, and developmental factors within the Biofuels industry. These hypotheses will further guide the review in determining the gaps in the industry. The review is an essential element that utilizes different fundamental resources to examine the issues of biofuels.
Concept of Leadership
The concept of leadership mainly advocates for encouraging and inspiring followers to come together to accomplish a common goal. Despite the debate about leaders being born or made, Baškarada et al. (2017) assert that leadership develops via a continuous process of experience, training, education, and self-study. To ensure that followers adopt or accept new technological advancements, leaders must perform certain tasks, have the necessary knowledge, and must acquire a particular personality. Thus, they must constantly study and work to enhance their management skills. According to Kalsoom et al.(2018), leadership involves influencing people to fulfill a goal and directing organizations in ways that make them more coherent and cohesive. To perform this process, managers apply their leadership characteristics, such as skills, knowledge, behavior, ethics, and beliefs. The concept of leadership emphasizes that trust and excellent communication are the key characteristics of a good leader (Baškarada et al., 2017). Furthermore, factors such as relationships and roles, attributes, and the business environment determine whether followers can successfully accept new changes.
Theoretical Framework
Through a theoretical content evaluation of different datasets, the thesis reveals that only a few studies specifically refer to the present conceptual structures that describe the influence of new technology on leadership (Riddell & Song, 2017). Most studies utilize advanced information technology theory as the basis of how important new technological inventions are in terms of leadership. Researchers acknowledge the high influence of new innovations in leadership behavior and identify them as one of the key factors influencing business changes (Aro, 2016). Furthermore, scholars agree that technological inventions such as second-generation biofuels create an alteration in roles of leadership across business operations (Baškarada et al., 2017). Since these are drastic alterations in the business world, researchers have had to categorize them as first-generation biofuels and second-generation biofuels to eliminate ambiguity.
In relation to the conceptual frameworks of leadership, intellectuals use various definitions and theories. Baškarada et al. (2017) differentiate two primary theoretical frameworks: contingency theories and universal theories. Universal ideologies suggest that the difference between other individuals and leaders exists in their generic behaviors and leadership traits. The application of these generic behaviors and leadership trait differences can be in all sectors of the business environment (Raghavendra et al., 2019). Authors who support universal theories empirically examine characteristics of leadership profiles, comparing new innovation leaders in the biofuels industry and those from conventional brick and motor sectors. The outcomes of these pieces of research are not conclusive with most of them supporting the idea that leadership characteristics are essential in both sectors. Nevertheless, there are significant differences between the characteristics of leaders who adopt current machinery and those from the customary brick and motor industry.
While El Ouirdi et al. (2016) explain that leaders have different traits, Baškarada et al. (2017) take a different approach to leadership. The author utilizes a longitudinal approach to describe leadership and technological adoption. El Ouirdi et al. (2016) explains that leadership is an acquired technique and one must learn through different experiences. In other words, an effective leader is one who continuously improves their techniques through observing the best practices in the industry. Even though the practice model of leadership has been maintained for a long time, researchers have identified some alterations in the implementation of some practices. These factors are essential in identifying the role of managers in the adoption of biofuels.
Only Raghavendra et al. (2019) distinctly utilize a universal view by describing it through the trait theory. By examining the language used in the biofuels industry, the scholars identify personality traits that differentiate the most successful entrepreneurs and managers. The theory suggests that born leaders had certain personality characteristics and physical traits, which differentiate them from non-leaders. According to critics, the ideology ignores the question of whether leadership traits are acquired or genetic (Raghavendra et al., 2019). The theory is further divided into two; emergent traits and effectiveness traits. Emergent traits are those that are primarily dependent on heredity and include such characteristics as self-confidence, attractiveness, intelligence, and height. Conversely, effectiveness traits are those that are heavily dependent on learning or experience and include such elements as charisma which, according to Aro (2016), is an essential leadership component. Furthermore, Max Weber described being charming as the most important revolutionary force that has the capacity to produce an entirely different orientation through followers (El Ouirdi et al., 2016). The reason for this is that employees or followers perceive their leaders as having magical powers and superhuman qualities making it easier for them to lead.
Aro (2016) follows a contingency technique that promotes the need to consider the context and take into account situational elements that can impact cooperation practices and leadership. Numerous studies are of the assumption that the alteration in context due to advancements in technology may impact leadership. According to El Ouirdi et al. (2016), one cannot assume that skills of leadership recognized in a different context could be utilized in a different situation without any adjustments. Nevertheless, some researchers such as El Ouirdi et al. (2016) make a tactical assumption without directly tackling any associated conceptual framework. Baškarada et al. (2017) state that leadership has different approaches because it must change in relation to a specific context. Additionally, leadership must be context-specific because it must adapt according to the needs of that specific situation. Correspondingly, Baškarada et al. (2017) affirm that constructive leadership behaviors are fixated on circumstances where leadership develops.
In terms of addressing the differences between contexts and situations, Baškarada et al. (2017) describe the two beyond the boundaries of pure contingency proposals. These scholars incorporate complexity, embracing the leadership behavioral complexity theory framework. Today, contingencies change at a high rate, therefore, managers must perform and conceive multiple roles and behaviors. Geismar et al., (2021) proceed to explore the definition of the function of context concerning leadership and new technological adoption. In addition, El Ouirdi et al. (2016) utilize the adaptive structure theory (structuration point of view) as their primary structural framework. From their perspective, leadership and adoption of such technologies as second-generation biofuels reciprocally impact and alter each other in a repetitive association. According to their viewpoint, besides the technological influence on leadership, other factors such as leaders’ appropriate technology further impacts leadership. In addition, it is through the interaction of organizational structure and technological advancements that the impact of technology on businesses, groups, and people emerges.
Leaders shape and are shaped by context and technology plays an important role in producing successful leaders (Raghavendra et al., 2019). Roland Arthur Lee and Jean-Michel Lavoie were among the scholars responsible for pioneering the concept of new technology adoption such as the incorporation of second-generation biofuels (Raghavendra et al., 2019). Since its invention, numerous researchers have added new information concerning the importance of leadership in adopting new machinery (El Ouirdi et al., 2016). Comparably, Baškarada et al. (2017) develop a Technological Structural Model and describe technology as a factor that influences the circumstances where actors operate. Additionally, technology further impacts the social construction and design context of its users (El Ouirdi et al., 2016). Thus, depending on the context, leadership skills and behavior must change for business operations to continue effectively.
With reference to the relationship of leaders with their teams, researchers cite leader-member theory, transformational leadership theory, and transactional leadership theory (Riddell & Song, 2017). Transformational and transactional leadership ideologies are among the most discussed and influential leadership concepts for several years now (Putra et al., 2020). Transactional leaders are those managers who perceive the association between followers and them as an exchange process. In this case, followers’ compliance or performance is reciprocated through reward and contingent reinforcement measures (Putra et al., 2020). On the other hand, transformational leaders are those individuals who focus on inspiring and motivating followers to perform tasks. Recent studies demonstrate that styles of leadership may influence biofuels technology interaction among team members and performance.
To find out about how team members interact with new technology and how leadership influences this association, Putra et al. (2020) examine the impacts of transformational and transactional leadership on employee outcome and interaction. To establish similarities and differences, researchers compare interactions of teams across various technological advancements in the biofuel sector: first-generation biofuel industry and second-generation biofuel industry. Similarly, Baškarada et al. (2017) compare biofuel technology and conventional technology using transformational and transactional leadership ideologies. They do so to comprehend whether the styles of leadership of individuals in industries that utilize biofuels can be related to their leadership in the non-renewable energy usage sector. Nevertheless, this relationship is most essential in the area of business leadership that uses non-renewable energy. Thus, the relationship between team interaction and leadership style is dependent on the type of technology used in production.
While transformational and transactional leadership ideologies embrace a behavioral point of view that has leader behavior as its main focal point in relation to followers, a theory that uses a dynamic perspective is the leader-member exchange concept. The theory revolves around the quality and nature of the association between team members and their managers. The quality of this association, which has a mutual obligation, trust, and respect as some of its aspects, is perceived to predict organizational, group, and individual results (Riddell & Song, 2017). Kumar et al. (2020) utilize the leader-member exchange theory as a dependent changeable, examining how numerous leadership functions impact collaborative and cooperative relationships in the biofuels industry. Baškarada et al. (2017) expound on the leader-member exchange concept to propose practices and policies human resource management professionals can utilize to implement second-generation biofuels and positively impact worker perceptions.
The distribution of the dynamics of power was a result of informational power democratization. In this instance, Kumar et al. (2020) advocate for the shared leadership concept that focuses on the team’s role as the primary origin of power. The approach mainly advocates for the empowerment of an organization’s team members. The approach describes leadership behavior as a task that more than one person can perform within the organization. Riddell and Song (2017) state that shared leadership operates in three different dimensions: shared purpose, social support, and voice. Shared purpose can be described as a situation where team members appreciate and comprehend the main goals of the team project. On the other hand, social support is where team members offer emotional support to recognize or encourage each other. Finally, voice refers to the ability of every member of the organization to contribute to various decisions within the team.
Recognizing the essence of heightened technological advancement, especially in the biofuel industry in this sustainable, competitive business environment is significant. However, some pieces of research underestimate the significance of taking into account biofuel usage within the manufacturing sector. Riddell and Song, (2017) contrapose the usage of biofuels in the current economy highlighting their costs compared to conventional energy sources and to some extent the first-generation biofuels. They are of the opinion that biofuels are not easy to produce and that their raw materials are also challenging to find. Additionally, Boboescu et al. (2019) further highlight that biofuels do cannot provide enough energy to support large firms. However, Kumar et al. (2020) state that compared to wind energy, biofuels can match the hydroelectric power in terms of energy produced. Thus, if utilized along with hydroelectric power, biofuels could be useful in meeting the energy needs of large companies.
Employee Engagement and Second-Generation Biofuel Adoption
To understand employees’ role in the adoption of second-generation biofuels, it is important to understand the theoretical aspect of employee engagement, satisfaction, and performance management. Neto et al. (2017) state that the conceptual frameworks of employee satisfaction, performance, and engagement are interrelated. These define and provide guidelines that could be used interchangeably to ensure the successful incorporation of second-generation biofuels. According to Raghavendra et al. (2019), new technological changes often improve employee performances by making their work easier and reducing the amount of time taken to perfume a certain task. However, Neto et al. (2017) conclude that it is significant to note that managers play an essential role in leading workers in embracing new programs. They identify different employee engagement theories that help describe the role of employees in adopting new technologies. One of these engagement theories is categorized under motivational ideologies.
There are five theories of motivation: Hertzberg’s Two-Factor Theory, Maslow’s Hierarchy of Needs, Hawthorne Effect, Expectancy Theory, and Three-Dimensional Theory of Attribution (Riddell & Song, 2017). According to the report, Hertzberg’s Two-Factor concept derived its name from its motivator and hygiene factors ideologies (Raghavendra et al., 2019). The motivator factors, in this case, involve increasing employee engagement using elements that improved the moods of workers such as recognition or promotions. On the other hand, scholars describe hygiene factors as those that reduce employee satisfaction such as the lack of benefits, poor salaries, and poor relationship between workers and their managers (Neto et al., 2017). They were of the perspective that motivators and hygiene factors played an important role in the acceptance of changes within the work environment. They suggested that for a work environment to incorporate changes within its structure, it must ensure that every individual is motivated to ensure a smooth transition. Neto et al. (2017) further affirms this notion by stating that recognizing workers and ensuring that an organization has excellent company practices and policies make it easier for managers to implement changes.
While hygiene and motivator factors influence employee engagement, researchers found that these elements were entirely independent of each other (Neto et al., 2017). Boboescu et al. (2019) demonstrated that motivator factors were directly proportional to an increase in employee satisfaction. Contrarily, the hygiene factors presence did not seem to increase motivation or employee engagement. However, there was a significant amount of decrease in employee engagement with the absence of hygiene factors. Neto et al. (2017) further suggests that for an organization to increase productivity and satisfaction, it must ensure that it improves both hygiene and motivator factors. To ensure that this takes place, Sinitsyn and Sinitsyna (2021) propose that workers must be treated in the right manner by providing a conducive business environment.
Maslow’s Hierarchy of Needs theory further defines employee acceptance of technological changes within the work environment. In a report about “A Theory of Human Motivation,” Maslow proposes that a psychological need hierarchy undergirds human decision-making (Riddell & Song, 2017). According to Maslow, five primary requirements form the foundation of human behavioral motivation (Raghavendra et al., 2019). These requirements include self-actualization needs, esteem needs, belonging and love needs, safety needs, and physiological needs. Experts suggest that Maslow categorized his theory by placing the most basic needs at the bottom of the hierarchy and placing the most complex human requirements at the top. In this case, individuals can only progress after addressing their most basic needs.
At the bottom of the pyramid, psychological needs are what Maslow considers as affecting human behavior within the work environment. According to experts, such elements as shelter and clothing, reproduction, overall health, sufficient rest, and food and water are the most fundamental needs one requires (Riddell & Song, 2017). In order to ensure that employees are able to adopt such new improvements as second-generation biofuels, their fundamental needs must be addressed. After addressing these needs, the next stage is ensuring that the employee is secure. The safety requirement involves protecting workers against theft and violence, ensuring their well-being, and providing them with financial security. However, Stewart et al. (2018) state few pieces of research show that this stage is essential in adopting new technology. Despite this, Boboescu et al. (2019) affirm that safety needs are a requirement within a business environment. For instance, it has been proven that a safe working environment improves employee engagement. When a worker is ensured that second-generation biofuels technologies are safe, they are more likely to embrace the technology.
The third level from the bottom of Maslow’s Hierarchy of Needs is referred to as belonging and love needs. According to experts, this is the last stage considered as the lower needs of workers (Stewart et al., 2018). Categorized under this ideology includes friend and family relationships, which determine the level of employee engagement. Fallatah and Syed (2018) contradict this notion by stating that they do not have a lot of impact on the level of adoption of new technology by employees at the workplace. Nevertheless, important relationships in terms of technology adoption are those within the work environment. A sense of belonging in a particular team within the work environment can influence the potential of an employee in adopting new technology (Riddell & Song, 2017). The top-level hierarchies in Maslow’s ideologies are esteemed need and self-actualization. According to researchers, esteemed needs could be classified into acknowledgment and respect for others and self-respect (Boboescu et al., 2019). These are essential when it comes to implementing new technologies because employees will influence one another depending on the level of respect they have from one another.
Research further investigates employee’s role in incorporating second-generation biofuels through the Hawthorn Effect lens. According to Boboescu (2019), fluctuations in behavior occur when a manager watches and monitor’s employees. Research states that the presence of an individual watching can influence behavioral changes (Sinitsyn & Sinitsyna, 2021). In this case, it is important to know the characters of employees since this would help the manager decide whether to include modern technological changes within the system. Additionally, the presence of a supervisor ensures that employees work efficiently and save on time. In addition, the Hawthorn Effect proposes that an employee should be treated in a good way (Riddell & Song, 2017). Thus, this would encourage employees to consider embracing new changes intended to help an organization adopt a more sustainable way of manufacturing.
Other pieces of research propose that it is important to explore the relationship between motivation and employee engagement. Kumar et al. (2020) state that for a business to realize employee engagement and productivity, employers must strive to understand the relationship between engagement and motivation. Today, these factors have become an essential strategy in business, particularly because of the recent pandemic. Employers have realized that they need to do more in engaging their employees. Most of them agree that motivational factors must be put in place to ensure that there is an increase in employee productivity (Riddell & Song, 2017). Victor Vroom explained the expectancy theory and unlike Herzberg and Maslow’s theories, Vroom focused on employee results and not needs. According to the expectancy theory, what determines an excellent result in the workplace is what the employee will receive in terms of reward (Raghavendra et al., 2019). By convincing workers that there would be better rewards with the introduction of second-generation biofuels, they are more likely to adopt the new technology.
Depending on the three varying factors, employee attributes can alter and the consequences may affect their well-being, self-perception, and mood. As claimed by Nanda et al. (2018), workers attributes can be applied to different dimensions (global), unstable, or stable. By acknowledging these different situations, managers can influence employees to embrace new changes. As reported by Boboescu et al. (2019), exposure to negative events that are uncontrollable results in employees developing depression. However, other researchers state that these results are true when it comes to some people. Other experts affirm that the varying circumstances of an employee determine their ability to accept new changes. These are important roles that should be taken into account when trying to make a particular business sustainable by adopting a greener method of energy generation. Employees are a significant aspect of a company and their daily activities within an organization determine the success of that company. To ensure that new technological changes are introduced within an organization, it is essential to consider the company’s workers.
Second-Generation Biofuels: Biofuels and land-use changes
Numerous pieces of literature propose the need to discuss the rewards and risks of land-use change in terms of biofuel production. Resent pieces of research concerning the effects that conversion of land has on the global warming pollution resulting from crop-based biofuels are defining the rewards and risks of measuring biofuels (Neto et al., 2017). According to these studies, crop-based biofuels cause deforestation; however, these pollution impacts could be negated and as a result, this may lead to more pollution (Riddell & Song, 2017). These calculations are a type of developing science whose numbers can be predicted to fluctuate as more research continues. Nevertheless, experts can conclude that to address global warming, biofuels must effectively utilize energy and land.
What should be noted is that individuals can produce some biofuels without experiencing harmful effects as a result of changes in land utilization. As a consequence, these have the highest probability of contributing to reducing global warming in the world. Boboescu et al. (2019) provide examples of such biofuels as those manufactured using perennial growth on land not currently used for farming or growing food crops and those produced from biomass waste products. Contrarily, there are those pieces of land that must not be utilized for the production of biofuels, particularly forests full of biodiversity and those high in stored carbon. The reason for this is that converting forest land to crop-growing may contribute to higher global warming effects compared to the amount that would be reduced by biofuel production within the same land.
To understand the rewards and risks of land-use change, it is essential to discuss the science surrounding the technique. According to recent research, experts estimate that if there was the conversion of peatlands into plantations of palm oil to manufacture biofuels, there would exist a “carbon debt” that would take more than 400 years to repay (Sinitsyn & Sinitsyna, 2021). In America, soybeans and corn are the primary biomaterials for producing biofuels and these are cultivated on existing agricultural land (Neto et al., 2017). Thus, in the United States, there exists no direct land-use change since the corn and soybeans are grown on existing agricultural land. However, if there is the removal of the soybeans and corn from the market for animal feed and food, there would be an existence of indirect land-use change (Riddell & Song, 2017). Subsequently, this causes an increase in soy and corn prices, initiating the conversion of land in other areas of the globe.
A report by Neto et al. (2017) concerning this indirect impact utilized models of agricultural economics to approximate how the world’s market responds to the increased utilization of corn for purposes of biofuel production. The experts, in this case, used historical data and the agricultural economics models on the conversion of land to evaluate where the cultivation of new crops would occur, the land that would be converted, and the resultant emissions. From their findings, they found that an increase in corn ethanol use would produce almost double the amount of global warming impact compared to gasoline use (Raghavendra et al., 2019). To ensure that particular guidelines govern the production of biofuels, a Renewable Fuel Standard (RFS) was paced in 2007 (Nanda et al., 2018). Besides providing additional guidelines on biofuels production, the bill proposed the acceleration of their production to more than 30 billion gallons by 2025 (Riddell & Song, 2017). Additionally, the bill requires biofuels to decrease global pollution and includes environmental pollution resulting from the indirect conversion of land.
The RFS does not include restrictions on con ethanol manufactured in already existing companies or those companies that were under contractions during the process of discussing the bill. The main benefit of the RFS bill was to ensure that it reduces pollution from any biofuel production; however, this exemption goes against the intended solution. If this exemption remains, then the resultant global warming pollution would undo the main goal of biofuel production due to an increase in the level of pollution (Kumar et al., 2020). The exception is a controversial matter that must be addressed to ensure that the RFS bill achieves its goal in its entirety. Environmentalist proposes the removal of the section from the RFS guidelines to facilitate the reduction of global warming measures (Kumar et al., 2020). Existing firms should consider changing to a more effective biofuel production method.
There are numerous ways to a sensible biofuel production, which would ensure that there is an increase in the production of biofuels and a pollution reduction. Kumar et al. (2020) propose how bioenergy and biofuels can be a constructive part of a wider approach to tackling climate change. As stated by Kumar et al. (2020), policies based on performance may reward decreases in global warming pollution over the life cycle of a fuel, hinged on the greatest available data and assessed in a transparent and open process. Currently, the RFS ii discussing measures of evaluating global warming-related to indirect land-use change and other forms of producing biofuels. Since the evolution of the science of indirect impacts and global warming pollution is still ongoing, the RFS standards should consider the life cycle emission metrics. These would be important in evaluating the impact of land-use change in the biofuel production process.
For 14 years now, numerous developing and developed nations have confirmed blending mandates for sustainability norms and biofuels for their responsible business operations. Through the years, such countries the United States have, with success, attempted to improve biofuels production. The main reason most countries wanted to reinvent energy uses from first-generation to second-generation was to reduce environmental and social risks resulting from the production of biofuel (Sinitsyn & Sinitsyna, 2021). Through a 2008 report whose aim was to inform policymakers on the significance of biofuel production technologies, experts were able to highlight the essence of countries changing from conventional means of energy production to biofuels technologies. During this period, there were a lot of discussions concerning biofuels as being sustainable energy sources (Raghavendra et al., 2019). Nevertheless, these debates centered on the first-generation biofuels technology.
In 2014, there was a publication whose objective was to inform the world concerning updates on biofuel technologies (Kumar et al., 2020). The study affirmed that the public and private sector would increase their interest in the usage of sustainable energy in their processes f production. In addition, compared to 2004, there has been an increase in the usage of biofuels in today’s world (Sinitsyn & Sinitsyna, 2021). According to Kumar et al. (2020), what drove this change was an increase in interest in reducing carbon in the atmosphere and green jobs. Furthermore, world leaders, especially those from countries dependent on oil for their production, wanted to have an alternative energy source for production. Biofuels as alternative energy sources would increase energy exports and heighten energy security within these countries. Since 2004, the biofuel sector has experienced significant changes, which have impacted the world’s marketplace today.
Initially, biofuels were used in the road transport sector; however, currently, it has developed and is being used for maritime transport, as cooking energy, electricity generation, and in the aviation industry (Sinitsyn & Sinitsyna, 2021). Private and governmental strategies in numerous nations further evolved from the limited scope of using the liquid form of biofuels to include solid and gaseous states (Nanda et al., 2018). Additionally, both developing and developed countries have updated biofuels products, thereby making them more efficient. Moreover, the study states that second-generation biofuels are more advanced in terms of their usability and can also be produced through processes of biotechnology. In the opinion of Sinitsyn and Sinitsyna (2021), economic systems must embrace the utilization of biofuels not only for energy, but also for fiber, feed, and food products.
First-generation biofuel technologies had numerous disadvantages with the main issue surrounding their usage being the utilization of land. Primarily, first-generation biofuels were produced from edible agricultural stocks, which took a huge amount of space. In addition, edible stocks played an important role in reducing greenhouse gases emissions in the atmosphere (Kumar et al., 2020). With the development in technologies, most countries have moved away from producing biofuels using crops and have ventured into algae-based and cellulosic fuels. Despite these advancements, the number of countries that are currently using second-generation biofuels has remained constant. Furthermore, in terms of policies governing the biofuel sector, there have been advancements. However, this has not made any difference when it comes to second-generation biofuel usage within the marketplace.
In developing countries, there exists a significant amount of untapped potential in the biofuels sector. However, due to rapid technological advancement, more emphasis has been placed on second-generation biofuel usage due to its additional advantages in protecting the environment. The second-generation biofuels, which are primarily composed of non-edible feedstocks were introduced in the world’s market in 2013. With a combination of practices from paper and pulp industries and products from waste and cellulosic materials, there has been an increase in the trade of second-generation biofuels (Kumar et al., 2020). As the utilization of biofuels increased, sustainability satisfaction constantly became a current trend within the marketplace. In addition, the heightened utilization of biofuels became a necessary condition for new organizations or businesses to access the market.
After an intense debate concerning sustainability regulation formulation, labeling, and certification of feedstocks and biofuels, it is through the complaint of vulnerable schemes that biofuels sustainability criteria have evolved (Kumar et al., 2020). Such countries as the United States have adopted new regulations governing biofuel production to include newer and more efficient methods of production. With numerous countries discussing the advantages and disadvantages of biofuels, there have been emerging propositions to sustainability. One of these submissions was to find ways of improving first-generation biofuels. The other approach was to find new innovative technologies that could allow for a wider range of biofuels to be manufactured into biomaterials and energy (Sinitsyn & Sinitsyna, 2021). In addition to this, the main goal of the second-generation biofuels was to reduce competition for feedstocks, which were initially the primary source of biofuels (Kumar et al., 2020). Put in other ways, second-generation biofuels are supposed to make traditional biofuels better and enhance supply-side reorganization.
Numerous sustainability issues encircle the growing demand for biomaterials and first-generation biofuels. In the opinion of Kumar et al. (2020), one issue surrounding biofuel technologies is the escalating pressure to change land utilization to use non-edible biomaterials. Experts further divide this issue into two; indirect land-utilization change and direct land-utilization change. Direct land utilization refers to a situation where land is cleared to provide space for biofuel production (Nanda et al., 2018). To solve this problem, biofuel production can be done in areas that do not require land clearance. On the other hand, indirect land-utilization change is primarily a result of demand and supply. To address this issue, organizations can find a way to increase the production of biomaterials without interfering with the usage of land.
Some international bodies such as Roundtable on Sustainable Biomaterials have been working to demonstrate that some biomaterials have less risk to the environment in terms of indirect land utilization (Kumar et al., 2020). Several methods can be used to define particular procedures that decrease the risk of indirect land utilization. If organizations comply with low indirect land-utilization practices, manufacturers can show that the production of biofuels can occur with little indirect influence on biodiversity or food production (Sinitsyn & Sinitsyna, 2021). The Roundtable on Sustainable Biomaterials benchmark, for instance, encompasses food insecurity mitigation measures in areas in the world that experience extreme poverty levels. The Roundtable on Sustainable Biomaterials further adds standards to enhance practices that enable the cultivation of biomaterials without altering food production.
Geismar et al. (2021) states that the Roundtable on Sustainable Biomaterials follows certain compliance and criteria indicators to demonstrate different ways of how indirect utilization of land challenges can be decreased. The study defines numerous requirements that can reduce indirect land utilization and how these requirements fit into different market operators. The indicators and depend on a methodology called the Low Indirect Impact Biofuels (LIIB) (Nanda et al., 2018). One of the approaches includes yield increases, which can apply to any circumstance that involves farmers growing the amount of biomass without increasing the amount of land use. Producers (farmers) can achieve this through various techniques of farming. One of the methods of increasing biomass levels includes using more advanced agricultural practices such as precision farming, improved crop varieties, and fertilization. Other techniques include crop rotation, which involves combining at least two different crops and intercropping.
Since first-generation biofuels placed additional pressure on available biofuels such as fiber, animal feed, or food, second-generation biofuels aim at reducing this additional stress. According to Nanda et al. (2018), this can be done by utilizing land that is not currently available for arable agriculture. The advantage of indirect land-use change is that it can cross borders by creating the need for supply and demand. For instance, European sugar beet demand could, in turn, create the need to grow more sugarcane in developing countries to sustain supply. Equally, the increase in demand can cause farmers to shift from other uses of the land to sugarcane agriculture to meet the needs of non-edible biofuel demand. In this case, one can measure and observe the reason for changes in land use. For instance, in developing nations, landowners can convert fields used for grazing to cultivating sugarcane since there is an increase in demand.
Experts cannot directly measure or observe land-use change due to numerous factors. One of these factors is that what causes a land-use change in a different area cannot be isolated from another factor causing a land-use change from a different location (Sinitsyn & Sinitsyna, 2021). For instance, in the example above, what causes a land-use change in third world countries is an increase in demand for sugar beet to Europe. On the other hand, what causes Europe’s land-use change is a result of reducing increase demand for biofuels. Despite the numerous advantages, there are a few disadvantages of indirect land-use change. In the opinion of Raghavendra et al. (2019), there is the probable consequence that indirect land-use change could have on the benefits of greenhouse gas of utilizing biofuels for transport purposes. Particular land-use change types can have very consequential impacts on greenhouse gas as a result of natural carbon stock conversion into carbon emissions in the atmosphere. These emissions could invalidate the intensity reductions of greenhouse gas transport fuel being guided by policies of biofuels.
Besides negating the impact that biofuels may have in reducing greenhouse gas, indirect land use may affect other people who may require the same biomaterials for other purposes. Nanda et al. (2018) claim that indirect land-use change has the probability of consuming agricultural resources primarily for biofuels. What this means is that individuals who may need to use the same resources may not gain access to them leading to undesirable results such as risks to food security or damage to the environment due to agricultural expansions. However, Geismar et al., (2021) maintain that not all biofuels may result in negative indirect land-use change impacts. For example, a crop may be used for manufacturing biofuels, and in the process, it may produce a by-product that can be reused to produce the same biofuels. The result, in this case, might be a reduction in land use and demand for the same crop. Correspondingly, Aro (2016) reports that land-use change as a consequence of a demand for biofuels can have useful effects. To affirm this story, research concerning land-use change in third world found that greenhouse emissions from the expansion of sugarcane had a resultant effect on the expansion of the same crop for pasture (Geismar et al., 2021). The advantage of this is that there was an increase in the uptake of carbon, thereby reducing emissions resulting from land-use change.
In the field of renewable energy, one of the sectors that have experienced significant change is in the area of biofuels, specifically second-generation biofuels. They depict products from the latest commercial dynamics that are included in the bio-economy. In this case, the bio-economy refers to biomass-based goods such as biomaterials, energy, feed, and food, which are now progressively available (Aro, 2016). Compared to first-generation biofuels, second-generation biofuels can reduce carbon options concerning their impacts. Nanda et al. (2018) state that manufacturers produce second-generation biofuels from lignin, hemicellulose, or cellulose. Biofuels produced using such products can be used in vehicles that utilize such energy or combined with petroleum-based fuels. Representative cases of second-generation biofuels include the Fischer-Tropsch fuels and cellulosic ethanol. Additionally, compared to fossil fuels, second-generation biofuels have a higher energy output, little impact on the environment, and reduce land competition.
Experts predict that by 2025, the usage of second-generation biofuels would increase by 50% with the biofuel being valued at close to $24 billion (Raghavendra et al., 2019). Geismar et al., (2021) claims that by 2022, biofuel usage in the transport sector would increase by more than 70 billion liters to approximately 193 liters per year compared to 2014. From these figures, experts can conclude that the demand for advancement in the biofuel industry biofuels will increase. Recent studies show that since the United States has increased its production of ethanol, there has been a resultant increase in the demand for biofuels in the global market (Geismar et al., 2021). Nevertheless, due to the high level of market fragmentation of biofuels, hundreds of various firms participating in this area use different second-generation biofuel production.
In the world’s market for liquid fuel, biofuels have gained popularity with a greater amount of biodiesel and ethanol being consumed and produced (Aro, 2016). Nonetheless, aside from the higher potential, there are challenges relating to access to feedstock, price parity, and the development of supply chain infrastructure that affects biofuels. All these factors affecting biofuels are important in promoting second-generation biofuel markets. Notwithstanding the expansive biomass utilization as an energy production source, some third world nations until now rely on imported oil to meet their energy demand. Due to this reason, these countries are vulnerable to volatile and high prices of oil. A country such as the US created a powerful first-generation biofuel industry, which provided it with significant infrastructure and production capacity (Geismar et al., 2021). Nations that have powerful government funding and regulatory authorities may have an added advantage in this sector; however, with time, this might change. Presently a majority of the second-generation biofuels; for example, biomass-to-liquid biodiesel and cellulosic ethanol, are in the process of commercialization.
Second-Generation Biofuels in the United States
Research states that for more than a decade, the United States is among the economies that have controlled the market (Osmani & Zhang, 2017). The reason this is the case is that these countries have supportive governmental incentives and regulations for the production of biofuels. While third world countries created a powerful first-generation biofuel industry, some of them such as India and Thailand were still in the phase of developing cellulosic ethanol (Nagler & Gerace, 2020). Nevertheless, a potential pull on demand sources exists in such markets as that of the United States. These markets have developed cellulosic ethanol production and therefore, may increase their amounts of imports of the raw materials required in the manufacturing process. As a result, developing nations join the pool farmers (producers) willing to supply such markets.
According to a United States report, roughly 5% of the total energy used in the transport system was from biofuels. These findings leave a considerable gap that will be filled by the usage of second-generation biofuels in the future. Among the biofuels utilized in the transport industry, is a propellant made of 10% ethanol (E-10) and is used to propel light vehicles. A higher version of petrol, the E-15 is used by traditional vehicles (Nagler & Gerace, 2020). Furthermore, heavy-, medium-, and light-duty vehicles manufacture for diesel propellant further incorporate biodiesel with B-5 and B-20 being the most recurrent (Geismar et al., 2021). Regardless of some challenges emanating from infrastructure limitation, feedback difficulties, and regulatory uncertainties, numerous second-generation biofuel firms persist in moving towards commercialization.
Variations exist among pieces of research about second-generation biofuels and acknowledge the rapid changes occurring within the industry. According to reports, second-generation biofuel production in America exhibit particular aspects (Mungodla et al., 2019). The type of second-generation biofuel that is mostly produced in the United States is cellulosic ethanol. In a report conducted on about 112 biofuel producing firms, the number of ethanol-producing firms is approximately a quarter of this figure (Nagler & Gerace, 2020). What primarily determines the location of these plants is the con plantation which is the main raw material for manufacturing the cellulosic biofuels. Thus, in the United States, most companies producing this type of biofuel mainly operate in the Midwest where large con plantations exist (Nagler & Gerace, 2020). Studies project an increase in second-generation production in the United States with more states being more open to the idea of reducing global warming and food security.
Historically, there have been low cellulosic levels of production; however, the sector has seen a considerable amount of progress. 2013 marked the year when second-generation biofuels, particularly cellulosic ethanol, became a reality. During this time the production process included the use of municipal solid waste, agricultural waste, and vegetable waste. The first organization that initiated the production of cellulosic biofuels was Vero Beach, which was soon followed by other companies such as POET (Osmani & Zhang, 2017). Currently, among the highest producers of cellulosic ethanol are Abengoa and INEOS Bio (Mungodla et al., 2019). According to research, in 2014, approximately 25% of the produced cellulosic ethanol was utilized and it is projected that this figure will increase by 2025 (Hirani et al., 2018). Thus, this confirms that there is a need to expand and modernize the second-generation biofuel technologies to incorporate this rate of increase.
The Renewable Fuel Standard (RFS) is the primary driver when it comes to policies governing biofuels. The policy demands an increase in biofuels production to sustain the rapidly developing bio-economy and further reduce greenhouse gas emissions to the atmosphere. The RFS considers how biofuels perform in terms of greenhouse emissions rather than what type of feedstock it uses. In this case, biofuel must decrease the emission of greenhouse gas into the atmosphere by 50% when equated to fossil fuels (Mungodla et al., 2019). Besides cornstarch, their numerous feedstocks are recognized as a modern propellant within this classification. Correspondingly, cellulosic biofuels must decrease lifecycle greenhouse gas discharges by over 55% (Mungodla et al., 2019). Any diesel propellant that has a 50% lifecycle greenhouse discharge reduction and is produced as a result of biomass feedstocks meets the requirements for the biomass-based biodiesel group (Nagler & Gerace, 2020). These categorizations are necessary for complying with the RFS policies of ensuring that second-generation biofuels contribute to conserving the environment.
Besides implementing the RFS policy, the United States government utilizes Renewable Volume Obligations to make sure that importers, refiners, and blenders of petroleum-based diesel and petrol comply with standards of renewability. The Renewable Volume Obligations set goals in terms of percentages consistent with the renewable volume required of the biofuel per year. The reason for this is to allow for easy tracking of targets and flexibility in attaining the set goals of the biofuels. After the biofuels meet the set standard, they are assigned a specific code, which the producing firm can generate or can purchase from what is known as the RIN market. Suppliers with access to these RIN codes can decide either to sell them or save them for future use. The Environmental Protection Agency is the body that certifies the RIN code in the United States (Hirani et al., 2018). Thus, every RIN must pass through this organization to ensure that there exists uniformity in the market.
There is a need to expand the second-generation biofuel sector; however, there are unforeseen problems that affect this area. Despite being the greatest driving force behind the biofuels sector, the RFS has encountered a few challenges. According to Hirani et al. (2018), the RFS is experiencing uncertainties that have halted the market expansion of second-generation biofuels. Reports show that in 2014, E-10 reached the blended wall, which refers to the permanent challenge of increasing the percentage of ethanol to more than 10% (Osmani & Zhang, 2017). What this caused was that the Environmental Protection Agency decided to delay the production of the biofuels for close to three years. Furthermore, Osmani and Zhang (2017) states that a reduction in the demand for biofuel usage as one of the causes of the delays. Consequently, this resulted in manufacturing companies missing their deadlines in terms of supply and demand. Due to uncertainties in relation to policies, stakeholders became increasingly agitated, thereby putting the future of second-generation biofuels at risk.
Despite the challenges, numerous pieces of research propose several strategies of ensuring that there are successes in the area of expanding second-generation biofuels. (Nagler & Gerace, 2020) mention that for second-generation biofuels to be incorporated in the market successfully, technological advancements must consider cost competition. Besides the RFS policy, other states provide different incentives to ensure that suppliers and producers are more open to adopting new technologies. Particular government agencies in the United States provide loans and grants to promote investment in second-generation technologies (Osmani & Zhang, 2017). Before 2015, the American government only provided funding for biodiesel and bioethanol production (Osmani & Zhang, 2017). However, since there was an increase in the interest in improving the biofuels sector, currently the United States government has expanded funding to include possibilities for the wider bio-based sector. An example of such an opportunity is the 2014 Farm Bill that funds the United States Department of Agriculture (USDA) Bio-Refinery Assistance Program (Hirani et al., 2018). The reason such programs exist is because of the increased urgency in protecting the environment and ensure that the global market is more sustainable.
The United States government further expanded guarantees in the biofuel sector in 2015. The guarantees include incentives meant to expand technologies in bio-based and renewable chemicals areas. According to studies these incentive products have had a positive impact within the second-generation biofuel production industry. In this case, they have enabled inventive emerging biotechnology firms to be eligible for loans from the USDA and also improve their investment chances (Hirani et al., 2018). One of the factors that can explain the rapid growth in consumer demand for second-generation biofuels products is the Bio-Refinery Program incorporation of bio-based products (Osmani & Zhang, 2017). The program incorporates such products as bioplastic, intermediate products, and biochemical. The USDA further has a program that places products on a registry after certifying them. In addition to the need to include product lifecycle assessment from brands and retailers, the program is one of the main factors promoting second-generation feedstocks.
Second-Generation Biofuels in Developing Countries
When it comes to developing countries, the nation has a well-established first-generation biodiesel and ethanol market. Reports demonstrate that third world countries have three types of mills: mixed mills, sugar mills, and ethanol mills (Nagler & Gerace, 2020). Bioelectricity, ethanol, and sugar markets have been providing options for hedging for over ten years now. Biomaterials and cellulosic fuels provide additional options for diversification of products, which opens new domestic and export markets (Hirani et al., 2018). Developing countries’ second-generation biofuel sector mainly tends to grow due to the already available logistics of feedstock and infrastructure, which are existing due to the established first-generation industry. Thus, this makes it easier for the development of biofuel technologies in third world countries.
Authorities such as the Low Carbon Fuel Standard (LCFS), the Renewable Energy Directive (RED), and the Energy Independence and Security Bill played a huge role in promoting third world countries’ second-generation biofuels (Bryngemark, 2019). These mandates promoted these new technologies by increasing the demand for biofuel materials. Currently, developing nations have no proper programs to initiate the consumption of second-generation biofuels; however, it has introduced incentives meant to drive the development. Currently, developing countries have started investing in research and development programs meant to discover more information concerning second-generation biofuels. As stated by Bryngemark (2019), biofuel programs have been put in place to assist companies that wanted to invest in research and development. Comparably, the São Paulo State Research Foundation (Fapesp) instigated a research scheme to be used for common study projects and academic purposes (Nagler & Gerace, 2020). All these are efforts to ensure that there is a successful transition of second-generation biofuels from first-generation biofuels.
The Joint Plan for the Industrial Technological Innovation of the Energy and Chemical Sugarcane-based Industries (PAISS) is one of the schemes that had an essential function in the initial construction of one of the first second-generation biofuels in developing nations (Bryngemark, 2019). These plants started their operations in 2014 and were producing approximately 139 million liters of ethanol per year (Nagler & Gerace, 2020). The PAISS project has been a source of funding, especially in areas dealing with gasification and biotechnology associated with sugarcane products and in the sector of the second-generation biofuels (Bryngemark, 2019). Even though the incentives of the European and the United States markets were essential in attracting cellulosic ethanol investments, the redundancy of the agricultural and industrial yield of developing countries’ first-generation ethanol assisted in impacting decisions concerning new technologies.
Currently, the third world nations’ governments are attempting to improve the existing first-generation technologies. According to Bryngemark (2019), research and development facilities are researching various technologies that can be used to improve bioethanol production in third world countries. The main goal of this technological advancement is to increase ethanol production by more than 50% from the current 54 liters being produced (Raghavendra et al., 2019). With these developments currently continuing, it is projected that bioethanol production using second-generation technologies will increase by 2050 (Nagler & Gerace, 2020). The projection considers the implementation of public policies that will incentivize the consumption and production of second-generation bioethanol. According to Lynd (2017), the main materials for generating second-generation bioethanol are known as lignocellulosic materials. To ensure that these materials are available in large quantities, there could be an optimization of part of the existing sugar mills.
Significantly, some of mills existing in developing worlds can be easily be optimized to increase the production of lignocellulosic material. Hirani et al. (2018) state that the upgrade of existing first-generation biotechnology can be treated as updating outdated machines. In this case, this would be a faster means to achieving second-generation bioethanol production. Reports mention that by updating existing technology, countries participating in sugarcane production can increase by more than 90 million tons (Hirani et al., 2018). The same report further suggests that if the produced sugarcane is approximately 80% viable, then the amount of bioethanol that would be produced would be around 1.2 billion liters of second-generation bioethanol by 2050. In this context, if developing nations continue to construct more second-generation bioethanol mills, it is possible that by 2050, these nations will be able to achieve greater heights of bioethanol consumption and production in the global market.
Many challenges encounter developing industries, especially in the biofuel sector. The first problem is associated with land use because developing countries when compared to such countries as the United States do not have enough resources to ensure that they can cope with the changing economic situation (Nagler & Gerace, 2020). For instance, America has more scientists who can investigate the impact of different types on land use compared developing countries. As a result, these nations are reducing the rate of development of the world economy in terms of creating a sustainable economy. Furthermore, developing nations do not have enough financial resources to ensure that they can participate in the incorporation of biofuels in their manufacturing industries.
To ensure that such countries can contribute towards a sustainable community. The most important factor that developing countries can consider is that they can support developing countries in adopting new technology. According to Hirani et al. (2018), developing countries are still using first-generation mechanical tools to produce biofuels. In todays’ competitive world, technology plays a huge role in production (Lynd, 2017). According to Hirani et al. (2018), in order for a particular company of country to perform in relation to business, it must be able to leverage iots technology to ensure it gains. For this reason, such countries as the United States are performing better in the world’s economy when compared to developing nations. As a result, America has a favourable performance in the bio-economic industry. However, the sector develops slowly because developing world cannot cope with the rapidly changing technology. As a result, the sector has a slow development due to the fact that developing countries do not have the necessary resources to sustain the production of biofuels.
Developing nations further do not have adequate research institutions that can ensure that they are successful in implementing second-generation biofuels. According to Hirani et al. (2018), the United States has programs that ensure that its research and development institutions have enough resources to ensure that they always have new inventions in the sector of the second-generation biofuel industry. For this reason, this country has managed to control how it competes with other nation. While this is occurring, developing nations are inhibited from acquiring new knowledge. The reason for this is that there is not enough resources to ensure that they can learn more from the developing nations. Furthermore, new technology is more expensive compared to maintaining the existing equipment. However, this is a short term solution, which continues to derail these countries’ economy. To ensure that they can cope with the rapidly changing economy, developed countries should consider offering incentive programs to developing nations.
Research Methodology
Evaluating the pedigree of second-generation biofuels does not only concern discussing shared visions, assumptions, and values; however, second-generation biofuels are generally tethered to particular technologies and techniques. The technologies and techniques assist to establish the viability and credibility of biofuel products (Hirani et al., 2018). The socio-technical challenges surrounding the examination of second-generation bio-fuels are not distinct from certain methods. Rather, they are designed by the technology affordance and individuals have to take into account the cost-effectiveness and efficiency of various techniques. Additionally, research must account for the need to avoid negative environmental and social impacts of second-generation biofuels.
The creation of new methods, consequently displays a technology process evaluation founded on a socio-technical criterion, even though it has a limited range. Within this limited scope, today’s technologies that can be classified as second-generation have been found to be problematic. Since most countries have identified the biofuel sector as an area that provides numerous sustainable economic opportunities, the United States has ventured in the process to bolster its economy. However, due to the issues found within the second-generation biofuel sector, the objective of improving the economy may not be achieved. For instance, when a cost effective test was done on non-edible vegetable based biofuels, the findings show that this was not cost effective (Siedlecki, 2020). The test found that non-edible vegetable oils had a high oxygen content, which made them immiscible with petroleum products. Furthermore, the examination revealed that when the two were mixed they became more viscous making combustion difficult (Siedlecki, 2020). For this reason, the products were inefficient and, as a result, had little economic value.
In other cases, there are techniques that can be used to produce biofuels in huge quantities. According to Akhtar (2016), gasification, pyrolysis, and liquefaction are some of the methods utilized to convert lignocellulosic biomass directly into fuel. Nevertheless, these procedures further pose challenges in the process of production. For fuel to be produced in large amounts, the firm must be willing to pay for the additional cost of production. For instance, the conversion of pyrolysis takes place at higher temperatures, which makes the process of manufacturing expensive (Hirani et al., 2018). Despite the attempt to improve first-generation technologies to second-generation ones, the challenges that exist do not make economic sense, especially for developing countries.
There are solutions to ensuring that production produces maximum output while managing the cost of manufacturing. An alternative can be the use of catalysts during production and this involves employing versions of specific types of compounds or elements (Siedlecki, 2020). These elements used during manufacturing generally have advance properties, and this include a large surface area and a higher reactivity ration compared to the raw material. According to research, the catalysts have been found to increase the efficiency of production and reduce the amount of temperature needed for manufacturing to occur (Geismar et al., 2021). Furthermore, the catalysts are cheaper by volume and weight compared to situations where production was done without them. Scientists are continuing to conduct research to improve existing catalysts and discover new ones that would help in the manufacturing of biofuel products.
The study, therefore, poses the question that to what extent second-generation biofuels can combine with the bio-economy in methods that may provide opportunities of genuine value in the future. To find out more about this, it requires researchers to utilize wider relflexivity degrees in which implications of second-generation biofuels, along with different technological approaches can be socially reflected upon. Currently, numerous technological advancements that account for the social and economic environment have been developed Akhtar (2016). For second-generation biofuels, issue mapping is one of the technologies incorporated within the manufacturing process. The role of this tool is to track and map the emergence of certain framings of concerns and issues associated with new technology through social media and the internet (Raghavendra et al., 2019). Deliberate mapping is another tool that new technology utilizes and it mainly involves stakeholders participating in the process of developing new innovations. The machinery uses public workshops, generally for a long time and iteratively, to open a broader scope of aspirations and concerns surrounding technological opportunities and social issues.
Empirical studies with the public and famers on the examination of lignocellulosic material versions are restricted in scope. Research with farmers generally limit themselves to deciding whether they perceive themselves as participating in a bio-economy structured by current technologies of harvesting waste (Geismar et al., 2021). A few pieces of research classify farmers as individuals who can provide information concerning the changes that are currently being witnessed in the bio-economic field (Nanda et al., 2018). Responsible research and innovation-based research of public perception of lignocellulosic material using deliberate technologies have revealed that there exists support for lignocellulosic material. However, the existing support may be conditional or highly dynamic based on trade-offs between various values and priorities (Nanda et al., 2018). Thus, new technologies are essential and are supported by both the farmers and the general public.
This article was designed to address the numerous issues associated with second-generation biofuel use. To evaluate how the different aspects of the business environment affect the incorporation of biofuels in the production sectors, the study utilizes a deliberate analytic methods to evaluate employee and manager roles in this area. Furthermore, there are some technical issues that the study analyzes. For instance, there are numerous problems that inhibit the development of second-generation biofuels. The study design inovles utilizing a descriptive analytic method to describe the issues related to technological advancements. Since this is an area that has a lot of research materials on the internet. Experts utilized the available resources from the online library, which provided peer reviewed articles that provided valuable information on employees, new technology, and the management. These resources further provided data concerning the bio-economy, which experts compared and provided a final evaluation.
In line with the deliberative methods utilized in this case, researchers further attended conferences relating to the biofuel industries. Those in attendance had specific questions to ask during the conference. Furthermore, experts were able to mingle with different stakeholders and shareholders within the sector. These individuals were able to provide valuable information pertaining to this research. Some of the questions posed related to the nature of second-generation biofuels. Furthermore, since this thesis seeks to provide additional information on how the world’s market can develop into a sustainable one, questions asked directly connected biofuels and the global economy. The conferences further provided critical information concerning third world countries and their efforts in joining the global bio-economic market.
Several limitations were involved during the process of the study. The research was mainly conducted utilizing online resources, which posed numerous issues. Some of the articles found on the internet were limited in scope. Despite being peer-reviewed sources, some articles were limited in terms of their coverage of the topic. However, to overcome such a challenge, experts had to analyze other documents to add on the already available information. Additionally, the utilizing the internet is limited because that data presented is non-behavioral. According to studies, behavioural data offer additional data concerning the behaviour of the people or phenomenon being studied (Raghavendra et al., 2019). However, articles only provide different views concerning a particular topic. For this reason, researchers found it difficult to study behaviors and relationships of different phenomena.
To find more information concerning a particular subject, it is important to enquire from the author. Some online resources are unclear and one may find it challenging to comprehend. As a result, an additional step of making enquiries is needed to ensure that every aspect of the research is of a higher quality. Nevertheless, it was very difficult to obtain responses from various authors. Furthermore, from those who responded, they took a lot of time, thereby making the research process longer. The other limitation was in terms of inaccessibility of certain web portals. Other important articles were inaccessible, thereby limiting the scope of the study. Finally, most peer-reviewed articles required some mode of payment. Some of them were very expensive, which meant that experts had to utilize other means of acquiring data related to the research topics.
The other limitation was in terms of attending the different seminars to find more information concerning second-generation biofuels. Raghavendra et al. (2019) describe seminars as a collection of individuals learning about particular topics or techniques. The advantage of these groups is that they often have an expert discussing a specific topic of internet. Nevertheless, there are limitations that hinder the process of acquiring knowledge. Seminars are expensive because one has to incur the cost of attending such events including the entry fee. Furthermore, some individuals trusted with providing information may not be knowledgeable themselves. As a result, it is not easy to verify such information and this makes it more challenging to collect data.
Results
Themes and topics discussed describe the impact of leaders, employees, technology on the adoption of second-generation biofuels; however, they further expand to expound on problems related to second-generation technology and their impact on the global economy. On the leadership and technology adoption, various materials revealed a positive association between the two. The study most concentrates of transactional leadership styles and transformational leadership. Finding states that transformational leadership style is the most effective leadership style when it comes to adopting new technology. According to research, transformational leaders have a charismatic quality that enables them relate to their followers. This skill is essential, particularly when it comes to convincing followers to adopt particular equipment. Through charisma, they are able to influence followers to adopt new changes within the business environment.
On the other hand, compared to other leadership techniques, transactional leaders were found to be effective when it comes to adopting new technology. According to Baškarada et al. (2017), these leaders utilize incentives to motivate their followers. They can leverage lucrative rewards in exchange for employee performance. In this case, the leader wants to adopt new production technologies, which are second-generation biofuels. To ensure that this occurs, transactional leaders can influence workers to adopt second-generation biofuels because it would improve their performance. The advantage of this is that when followers’ performances improve, they stand to gain from the numerous packages offered by the employer. Consequently, employers stand to benefit from enhanced worker performance, which benefits the organization as a whole. Additionally, if more people adopt this type of leadership, the whole economy will be improved and would become more sustainable.
The study further relates the two types of leadership and how they influence technology adoption. Transformational and transactional leadership are distinct in terms of their application (Baškarada et al., 2017). One involves using charisma and personal characteristics to ensure that a particular objective is achieved. On the other hand, transactional leadership involves offering reward for excellent performance. These techniques are essential when applied in different settings and offer an individual a wide scope of leadership skills to choose from. Combining the two styles is helpful because a leader would be able to identify particular situatiuations in which one can effectively aply. For instance, circumstances that require motivational speaking to change the attitudes of workers or followers, transformational leadership skills would be applied. Contrarily, where monetary incentives are required, transactional leadership skills would be the best.
Employees are an important aspect of the production process and further determine how an economy performs. According to Aro (2016), workers in an organization are the most important aspects for that firm. Therefore, there input matters, especially when it comes to the tools they utilized while working. There are numerous factors that must be considered when selecting specific types of tools used in the manufacturing process. Akhtar (2016) states that an organization should consider employees safety in the business environment. The reason for this is that employees who work in safe business environments are more motivated compared to those who do not work in safe environments. The use of biofuels in the process of production is not only safe, but also protects the environment from greenhouse gases. Therefore, employees would be attracted to companies with such technologies and this improves an organization’s employee retention rate.
Discussion
Second-generation biofuels technologies are an essential and significant development in today’s world. Currently, research states that there are numerous technological development in the field of biofuels (Geismar et al., 2021). More studies are still being conducted to ensure that there use is more efficient and organizations can receive value for their investment. Furthermore, there are numerous factors that are affecting the adoption of such technologies. Previous articles on the biofuel sector have identified such elements the cost of the equipment. Developing worlds are the most affected in this area since they are unable to afford such machinery. Additionally, they are unable to compete in the global bio-economic since they are still using traditional modes of biofuel production.
In terms of leadership, there are a few articles that establish a connection between leadership and technological adoptions. However, the available research clearly establishes a positive connection between leadership styles and technological adoption. Transactional leadership is one of those styles that can contribute to technological advancement, especially in the second-generation biofuels. According to Geismar et al., (2021), leveraging incentives to followers is positively correlated technology adoption. In this case, both the manager and the employee can benefit from adopting second-generation biofuels. Similarly, transformational leaders inspire their followers by making them perceive a greater future for both the organization and the world’s economy as a whole.
The research is important because it highlights the different advantages of biofuels. Second-generation biofuels are significant in areas where firms need to utilize efficient fuels. The study touches on how biofuels are made, emphasizing on the different renewable resources. Furthermore, second-generation biofuels are less flammable compared to petroleum products. This is essential because it guarantees the safety of employees at the workplace. Consequently, this improves employee confidence while working, thereby enhancing their performance. The other advantage of this study is that is describes the cost-benefit associated with second-generation biofuels. Currently, the cost of gasoline is at the same level with that of biofuels. Nevertheless, the total cost-benefit of utilizing petroleum products is generally higher. Additionally, second-generation biofuels are a cleaner and with their use, there would be less emission of greenhouse gases in the atmosphere.
There are limited resources that describe leadership and technological adoption. The significance of this study is that it fills this gap by providing additional information. In this case, the study identifies that there is limited data concerning leadership and technology adoption. However, researchers have provided more data on this specific topic. Experts have identified different sectors in which leaders can apply their knowledge and skills to improve their financial position. Transactional leadership and transformational leadership have been identified as the primary management techniques in ensuring that an organization can adopt new technology.
There are also gaps in research addressing employees and their role in adopting new technology, such as the second-generation biofuels. Most pieces of research address other disciplines as employee attitude and job satisfaction (Kumar et al., 2020). Others describe motivational factors and their performance within the work environment. Very few pieces of verifiable information address the role of workers in implementing new technological changes. This thesis is essential in providing additional data on the importance of employees when it comes to implementing and accepting second-generation biofuels. Furthermore, the study touches on the significance of second-generation biofuels and employee performance and retention.
Limitations
There were various limitations of the study and these were mainly related to the methodologies. Methodological issues that limit the study present an opportunity to directly and clearly identify the potential issues and propose ways that these problems could be solved (Raghavendra et al., 2019). One of the issues identified in the research process was related to selection and sample. Errors in sampling occurred when there was the use of a probability method of sampling in selecting the study population. As a result, there was a sample bias that emerged because experts had to select particular pieces of work based on the number of reviews it had. Furthermore, there was a problem in gaining access to some sites due to financial restrictions and restrictions from the authors. Therefore, experts had to resort to utilizing other forms of acquiring data to complete the research.
The other limitation was inadequate sample size to conduct a statistical analysis. For accurate analysis of a particular subject, there must be sufficient sample size (El Ouirdi et al., 2016). In this case, researchers are provided with a wide area to choose from, thereby making the findings more accurate. With a limited sample size, one is unable to draw conclusive information from an experiment. According to Kalsoom et al. (2018), when an individual has a large sample size, there are higher chances that their findings will be more conclusive. The opposite is true, the individuals, in this case, would have challenges in establishing relationships between phenomena. For instance, in establishing the relationship between employee and technological adoption, researchers experienced numerous difficulties when it came to finding research documents.
Numerous ways can be used to further this study because it does not address every aspect of second-generation biofuel industries. For instance, in the sector of employee involvement in technological adoption at the workplace, there is a limited range of information. Researchers can consider exploring this field to provide more information on how employees play a role in adopting new technologies. Furthermore, there is the issue of land use and how appropriate it is when it comes to reducing greenhouse gases in the atmosphere. Furthermore, limited information is available on how to maximize the available land resources for the biofuel industry. Experts could essentially conduct more experiments to determine how well firms can utilize the limited land resources in producing more biofuels to sustain the bio-economic sector in the future.
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