Economic growth is an explicit economic and political goal in nearly every nation, yet the theoretical models which describe the process of growth itself fundamentally misrepresent the role of natural resources and ecosystem services. In this paper we explore the important assumptions of the standard growth models, especially those concerning the ability of substitution and technical change to overcome resource scarcity and environmental degradation. We propose an alternative framework and revised model which accounts for the physical and ecological basis of economic activity, and for the important feedbacks between the economy and the environment.