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Appendix II: Analysis of Factors Associated<br />
with Aviati<strong>on</strong> Fuel <strong>Prices</strong><br />
dummy variable, the estimated correlati<strong>on</strong> is interpreted as the effect of<br />
the attribute <strong>on</strong> the per-gall<strong>on</strong> fuel price. Based <strong>on</strong> the findings in table 5,<br />
being located <strong>on</strong> the East Coast is associated with an increase in the<br />
price per gall<strong>on</strong> of 100LL fuel of about 22 cents. This correlati<strong>on</strong> was also<br />
found to be statistically different from zero. In another example, the model<br />
specificati<strong>on</strong> shown <strong>on</strong> table 5 uses a dummy variable to indicate the<br />
presence of competiti<strong>on</strong> at an airport—the variable equals 1 <strong>for</strong> airports<br />
that are served by more than <strong>on</strong>e FBO and 0 <strong>for</strong> airports that are served<br />
by <strong>on</strong>ly <strong>on</strong>e FBO. Results in table 5 indicate that the price per gall<strong>on</strong> of<br />
Jet A fuel is about 35 cents lower at airports that are served by more than<br />
<strong>on</strong>e FBO than at airports with <strong>on</strong>ly <strong>on</strong>e FBO.<br />
Table 4: Descriptive Statistics <strong>for</strong> Variables Used in Analysis of Variati<strong>on</strong> in Aviati<strong>on</strong> Fuel <strong>Prices</strong><br />
Airports where 100 Low Lead (100LL) Is Sold<br />
Variable<br />
All-airports dataset<br />
(1,581 airports)<br />
Standard<br />
Mean Deviati<strong>on</strong><br />
Towered-airports dataset<br />
(528 airports)<br />
Standard<br />
Mean Deviati<strong>on</strong><br />
Average net price (posted price excluding<br />
excise and sales taxes) (dollars per gall<strong>on</strong>) 5.10 0.74 5.67 0.77<br />
Annual airport operati<strong>on</strong>s (excludes military<br />
operati<strong>on</strong>s) (tens of thousands) 4.90 7.22 9.66 10.56<br />
Length of l<strong>on</strong>gest runway (thousands of feet) 6.21 2.12 7.93 2.34<br />
Air traffic c<strong>on</strong>trol tower is present at the airport<br />
(1=yes, 0=no) 0.33 0.47 1.00 0<br />
Pers<strong>on</strong>al income per capita in county<br />
(thousands of dollars) 45.68 13.13 50.40 16.35<br />
Square of pers<strong>on</strong>al income per capita in<br />
county 2,258.70 1,988.41 2,806.93 2,964.50<br />
Populati<strong>on</strong> in county (hundreds of thousands) 4.14 10.74 8.97 16.02<br />
East Coast locati<strong>on</strong> (1=yes, 0=no) 0.29 0.45 0.33 0.47<br />
Self-service 100LL is sold at the airport<br />
(1=yes, 0=no) 0.49 0.50 0.39 0.49<br />
Full-service 100LL is sold by at least <strong>on</strong>e FBO<br />
operated by a large-chain (1=yes, 0=no) 0.11 0.31 0.30 0.46<br />
Number of airports within 30 miles where fullservice<br />
100LL is sold 2.23 2.15 3.01 2.53<br />
Number of FBOs selling full-service 100LL at<br />
airports within 30 miles 2.73 3.01 3.90 3.77<br />
Number of FBOs selling full-service 100LL at<br />
the airport 1.17 0.50 1.45 0.75<br />
On-airport competiti<strong>on</strong> indicator (1=yes, 0=no) 0.13 0.33 0.32 0.47<br />
Page 32<br />
<str<strong>on</strong>g>GAO</str<strong>on</strong>g>-20-16 Airports
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