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The research presented in this study addresses the application of the hedonic pricing method of valuation for different categories of urban forests for which the substitute commodity can be found in the housing real- estate market in Zagreb, Croatia. The valuation is based upon a data base of real estates with 855 cases disseminated into 31 variable, many of which have spatial character and are gained by the application of Geographic information systems (GIS). The study is presented in a step-by-step manner and with detailed results generated by appropriate scientific rigor, which makes this volume a good reference point to scholars in the field of environmental economics and valuation.