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Purpose – This chapter outlines the need for policy packages in urban areas, demonstrates how effective policy packages can be designed by combining appropriate policy instruments and discusses the implications for Chinese cities.

Methodology – The results in the chapter are derived from a predictive model of two UK cities (Edinburgh and Leeds), an objective function to reflect a city's objectives and constraints, and an optimising routine which identifies the most effective level of intervention for each policy instrument.

Findings – Where available, fuel taxes, fare levels, road pricing charges, low-cost capacity improvements and public transport frequencies are the most effective policy instruments. Optimal combinations designed to cost no more than current strategies offer substantial benefits to society. Infrastructure projects typically offer much lower value for money. Strategies designed to meet challenging climate change targets can be designed, but may well substantially reduce other benefits.

Research limitations/implications – Other policy instruments such as awareness campaigns and walking and cycling measures could be tested in a similar way. Similar analyses could be conducted in high growth contexts typical of Chinese cities.

Practical and social implications – Policy packages will be important for Chinese cities. They are likely to differ from European specifications, and include greater use of infrastructure. The methodology presented here could be applied to their design.

Originality – The chapter brings together research reported elsewhere, presents some new results on synergy and discusses the implications for China.