$this->bbcode_second_pass_quote('venky', 'A') free market system by itself might not lead inevitably to perpetual growth, however, I think that it will always have an inherent pressure to growth, as millions of individual players will always be trying to better themselves, expand their businesses. With no regulation, and ready access to resources it will result in a steady growth in the right circumstances.
Most would agree that too much government regulation is a bad thing and its very harmful for the economy. How about the government only regulates the usuage of scarce and non renewable resources?
But I hate the idea of some bureaucrat liscensing out energy or raw material permits to the industry; that is almost a guarantee of corruption and cronyism.
Another option is trusts that act for the local community. They would not fall under the federal government, but would be responsible to the local community that elects them to safeguard the environment and resources that fall in that area. Any businesses operating in this area would have to pay the necessary fees to operate in that area, corresponding to the resources they use of pollutants they emit. The draw back is that this might not work on the global scale, many communities might choose short term greed over long term care of the environment, and might not really change the status quo.
We could also leave it to the free market. But the consequences of that are pretty clear right now; I dont really need to go into it.
Will individuals themselves be sustainable minded? Not until our culture and value system dramitically changes.
I feel depressed after writing that.

consumption of resources (renewable or not) beyond the renewal rate of those resources is unsustainable. Any activity that has a detrimental effect on our environment/habitat is unsustainable.
I don't think free markets would be capable of operating in a sustainable way, unless mind-sets change en mass. After massive education as to the finite nature of our world, complete regulation of the use of resources may be required.