The thesis consists of four papers which address the potential and challenges of the hedonic house price method. The aim of the thesis has been to estimate consistent and efficient parameter estimates of spatial varying regressors in the hedonic house price model. In particular, the articles are concerned with the value of different types of green space and how these values can be applied in urban planning policies related to climate adaption. The results presented in this thesis, ensure a “level playing field” in the assessment of the cost and benefits of different climate adaptation strategies and provide reliable estimates of the value of different types of green space.