Beyond Monetary Cost-Benefit Analyses: Combining Economic, Environmental and Social Analyses of Short Rotation Coppice Poplar Production in Slovakia

Rising demand for bio-based products exerts a growing pressure on natural resources such as wood. Sustainable solutions are becoming increasingly important to meet the demand. In this study, 20-year poplar Short Rotation Coppice (SRC) plantations located in Western Slovakia are investigated with respect to (socio)-economic, environmental and social sustainability. The cost-benefit methodology is applied to assess the economic profitability of a switch from conventional annual crops (corn maize and winter rye) to perennial SRC. To compare economic profitability of the land management, net present value (NPV), payback time (PBT), internal rate of return (IRR) and benefit-cost ratio (BCR) are calculated. The study was enhanced by adopting the concept of regional value added to indicate the local value creation. The results for the three scenarios yield an NPV equal to 12,156 euros ha(-1) for corn maize, 9763 euros ha(-1) for winter rye and 2210 euros ha(-1) with a PBT of 14.13 years for poplar SRC production. The regional value added for the corn maize scenario was estimated with 10,841 euros ha(-1), the winter rye with 7973 euros ha(-1) and the poplar SRC with 1802 euros ha(-1). To appraise non-monetized social values, semi-structured interviews (N = 4) were conducted among experts familiar with SRC management in Eastern Europe. Non-monetary benefits for the stakeholder groups society, farmers or landowners and the industry were identified in terms of land fragmentation, carbon sequestration and an increase in biodiversity within the plantations, farm diversification and higher independency from wood markets. The relatively poor image of SRC, farmers or landowners having concerns about being tied on long-term contracts and legal restrictions may become obstacles in the establishment of SRC. For estimating the capability of carbon sequestration in SRC plantations the RothC model was utilized, resulting in the potential soil organic carbon (SOC) average increase of 29% during the 20 years. However, a transition in land use patterns must involve thorough considerations of all three pillars of sustainability to ensure long-term viability of the establishment.