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Item Restricted Conservation rent in Philippine mining: empirical measurements and some policy implications(1983) Abayan, Perfecto B.; Santos, Teodoro M.This paper presents an analysis of conservation rent in the context of the pure theory of exhaustion as it applies to Philippine mining for the decade 1970-1980. Emphasis is on the concept and measurement of conservation rent defined as the opportunity cost of producing minerals now instead of in the future. Analysis of the data shows that the problem of mineral exhaustion is significantly considered in the pricing and profit maximization decision of mineral producers in this country as the pure theory of exhaustion predicts. In effect, mineral producers, in the process of optimally exploiting mineral resources, allocate rationally within the lifetime of the nations mineral deposits, the volume of minerals extracted. However, under extremely bad business times, mineral producers may relegate to lower priority the recovery of conservation rent to costs more essential to the survival of the mining industry.