Quantitative versus qualitative growth with recyclable resource

► We reassess the issue of limits to growth in a model with a recyclable resource. ► We make a clear distinction between the material content and the quality of final goods. ► Technological assumptions are fully consistent with the material balance principle. ► Positive growth of the material output can only be a transitory phenomenon. ► Long term growth only takes the form of perpetual improvements in quality of final goods. ► A physically feasible balanced growth path may not exist in a decentralized economy.