Economic growth has two components, one material and one non-material. As you correctly point out in your post it is possible to create value without increasing the use of resources. This is what some people call dematerialization of the economy and what I prefer just to call increased resource productivity. This process of dematerialization is driven by technological improvements. But technological improvements have limits. As Herman E. Daly (dean of ecological economics) would say 'We can surely eat less in the food chain, but we cannot end up eating just the receipts'. This means that we can make the material component of economic growth smaller, but it will never become null.

One shouldn't dare make economic points regarding limits to growth without taking into account physical limits and the relationship between economy and fundamental scientific laws as the laws of thermodynamics.

The first limit to growth is the fact that the earth is a finite environment. Once I've said this you may think, well, we can recycle non renewable resources forever. Then I'll ask you to keep your faith in technological improvements at bay and do a little research on the meaning of the Second Law of Thermodynamics. If you after doing this research still believe that this universal scientific laws might not be valid after all, I ask you to search for what Albert Einstein, the scientist who turned human knowledge upside down in the last century, thought about this fundamental laws.

Kind regards

You're suggesting a virtuous feedback loop, but I can't figure out how you think the feedback is happening.

??

Here are my thoughts on your position.

Unfortunately, save the subways and trolleys built in some cities, we are not set up to use alternative energy for transportation. Interstate electric trains are decades off. Were it possible to wave a magic wind and instantly create high-speed interstate rail and put an electric car in every garage, we would still find ourselves with another dilemma – how to get enough new electricity to power all those vehicles. Coal and natuiral gas will peak soon and would only be a short-term solution. Renewable energy has variable output for which we have no current way of storing it. Our only hope real hope based on current technology would be a massive and build-up of nuclear power plants.

“(c) the initial high price of alternative energy will temporarily slow growth, but competition and technological progress will eventually push prices below the historical trend and even asymptotically approach zero, increasing average rates of growth;”

Trucking costs, rail costs, commute costs, air fares, all on an inexhorable rise until such time as alternatives exist, will do more than slow growth.