If only the market decides, there could be a rather painful gap between the period when fossil fuel energy sources get very expensive and less-expensive alternatives become widely available. And fossil fuel energy sources are under constant threaten to become very expensive with little warning (remember Hurricane Katrina and those Islamic nuts running Iran)?
While the price of petroleum is high industry should take it upon itself to finance big R&D ideas. Conservation and localized renewable are little ideas that always get swallowed up when energy prices stabilize. If we're going to kick the petro-habit without severe withdrawal symptoms the energy industry should be looking at efficiency enhancing accessories and alternative feedstocks to refineries and power plants. Alternatively, money should be poured into rehabilitating industrial wastes into energy or industrial feedstocks. Consumption isn't the problem, developmental and disposal processes of consumables are.