Fishery management amidst spatially differentiated ecological-economic externalities

Abstract We study management decisions made jointly and independently by countries affected by an invasive species that is also a profitable fishery. The Red King Crab, introduced in Russian waters of the Barents Sea, spread into Norwegian waters. Management by Russia and Norway reflects differing markets and invasion damages. Our spatial dynamic bioeconomic model evaluates management of the crab and optimal game strategies integrating varied incentives from market prices, ecosystem values, and spatial connectivity. Our empirical application characterizes stock changes responding to different model components. This research shows economic and ecological trade-offs in Arctic waters with differing net benefits for sovereign stakeholders.