The Role of the Social Licence to Operate in the Emerging Bioeconomy—A Case Study of Short-Rotation Coppice Poplar in Slovakia

Abstract

Wood plays a key role in the endeavours of the EU to establish a circular bioeconomy based on renewable biological resources. Today, forestry on its own cannot sustainably satisfy the demand for woody biomass. Short-Rotation Coppice (SRC) represents a possible alternative production system where fast-growing tree species are cultivated on agricultural land. Thus far, lacking engagement from farmers and public opposition against other bioenergy projects have hindered the expansion of SRC. At the same time, society does not consider wood unconditionally sustainable anymore. The Social License to Operate (SLO) describes the dynamic relationship between industries, their communities, and other stakeholders. The present study adapted a quantitative SLO model based on integrative socio-psychological relationship modelling and applied it to a case study in Slovakia. The roles of trust, fairness, impact assessment, and governance hold for the establishment of social acceptance were analysed with Structural Equation Modelling (SEM). The model revealed the perception of individual benefits as the strongest predictor for social acceptance. The average level of social acceptance was found to be between “Acceptance” and “Approval”. The results thus show that SRC currently must not face societal pressure in Slovakia. However, the SLO is not static and must be constantly re-evaluated.