A simple model of urban passenger transport was developed using computer based software called Long-range Energy Alternatives Planning System (LEAP), the model was used to carry out a research associated with urban passenger transport in Beijing to analyze the situation of energy consumption and environmental emissions ofCO2, CO, CH4, N2O, NOx, and SO2 for the base year 2012 and extrapolated till 2030 for the future predictions. The paper established four scenarios of business as usual, public transport, new energy vehicle, and P&N, and assessed the energy consumption and environmental emissions reduction potential of each scenarios in order to propose an optimal transport policy which have an excellent effect on reducing energy consumption and environmental emissions.