“…Uncertainty in the Faustmann model was explored by Reed [1984], who analyzed forest fire risk: Willassen [1998], who included stochastic effects on the forest value growth: and Reed [1993] and Reed and Ye [1994], who explored the option value associated with amenity services in old‐growth forest stand. Following Hartman [1976], the importance of nontimber benefits and the effect of forest‐wide considerations have been addressed by a number of authors (Strang [1983], Paredes and Brodie [1989], Snyder and Bhattacharya [1990], Swallow et al [1997], Koskela and Ollikainen [2001]), but in all cases the analysis is constrained by the structure of the Faustmann model. Specifically, nontimber benefits are always considered to be a direct function of the age of trees.…”