A regional analysis of climate change effects on global snow crab fishery

Abstract The snow crab fishery faces increasing vulnerability to environmental factors, yet the literature on the relationship between climate change and snow crab harvest remains limited. This study estimates snow crab harvest functions using climate change indicators with unbalanced panel data of snow crab production from the eastern Bering Sea (Alaska), the southern Gulf of St. Lawrence (Canada), the Sea of Japan, and the Barents Sea (Norway‐Russia). The relationship between snow crab biomass, stock, and catch is analyzed and the endogeneity of stock in the harvest function is also addressed using climate change indicators as instrumental variables (IVs). The results show that the extent of Arctic sea ice is effective in addressing the endogeneity, and the random effects IV model with error components two stage least squares estimator performs the best to control heterogeneity. A 1% increase in snow crab fishing effort is associated with a 0.42% increase in snow crab harvest, and a 1% increase in snow crab stock causes a 0.98% increase in snow crab harvest. The reported estimates indicate a large stock‐harvest elasticity and provide supporting evidence to prioritize stock enhancement in snow crab fishery policy designs to maintain stocks at sustainable levels and minimize government expenditures on subsidies. Recommendations This study explores how snow crab harvests are influenced by snow crab populations and fishing efforts in the context of global warming across various global regions, including the Bering Sea, the Gulf of St. Lawrence, the Sea of Japan, and the Barents Sea. A 1% increase in fishing effort is associated with a 0.42% increase in harvest, while a 1% increase in snow crab population leads to a 0.98% increase in harvest, showing a high dependency on snow crab biomass. Arctic sea ice extent is identified as a crucial climate factor affecting snow crab biomass and harvests, making it a valuable variable for understanding and managing snow crab populations. The study supports the prioritization of stock enhancement policies by fishery agencies and suggests standardizing how fishing effort is measured across different regions to improve snow crab fishery management and future research.