I think gas prices will have an increasing impact on urban development in the years to come. Just today a
Canadian bank predicted that oil prices will double by 2012.
What we probably can say with some degree of confidence that is that rising gas prices will most likely make people seek shorter commutes. What we
don't know, however, is how that will play out in real life in our particular environment. This discussion began when I suggested that rising fuel prices could conceivably put a crimp in the "back to the city" movement, since in a place like Atlanta people might want to stay closer to their jobs, homes, shopping, school, etc., which, in our case, are mainly out in the burbs.
If employment shifted back to the city, then that might create a scenario where it's possible for people to shorten their commutes by moving intown. But even then you would still have major issues regarding improving schools in the city, lowering the cost of intown housing, reducing city taxes, improving perceptions of safety in the city, etc., etc.
That’s why the assertion that “rising gas prices will drive people back to the city” is very difficult to support.