A market solution is based on the belief that the rise of oil prices due to scarcity would stimulate investment in oil replacement technologies and/or more efficient oil extraction technologies and/or an increase in productivity. The economic challenge within an environment of decreasing energy supplies is that research into alternative energy sources currently relies upon fossil fuels for development. Critics argue that if conventional oil and natural gas become more expensive, alternative energy source development and increased technological efficiency research will become more expensive to the same degree. However, others argue that continued development of alternate energy sources will decrease both their cost and the petroleum input they require.

One market-based solution is to take signals from the oil futures market regarding drastic price increases, and to adjust consumption and efficiency accordingly. This approach assumes the validity of the efficient market hypothesis. As of 2005, the futures market has not signalled that such an increase will occur.

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