UC Santa Barbara

Retail gasoline prices continue to be of much interest to the public, with significant economic implications. Of course, pricing too has considerable influence on behavioral patterns, particularly travel. Considering the climate and sustainability issues that accompany pricing and consumption of gasoline, the substantive importance of gasoline pricing is of even greater significance. While national and state gasoline prices may vary, they are largely tied to fairly predictable factors, including the price of crude oil, weather, political stability, and refinery production capabilities, among others. However, local and regional gasoline prices can vary considerably. Capabilities for better understanding and predicting variation in gasoline retail prices is both informative and necessary, particularly if spatial factors are considered. This thesis explores characteristics related to gasoline price differences across a region. Of particular interest is assessing price gouging behavior, especially those that unfairly target disadvantaged groups. A spatial analytic framework that incorporates exploratory spatial data analysis, remote sensing, geographic information systems and spatial statistics is proposed to investigate the impact of local market conditions on the retail prices of gasoline across Santa Barbara County, offering important insights on regional price variation.