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Increase in environmental pollutions of fossil fuels calls for policies stimulating clean technology deployment especially in the transportation sector. To evaluate the efficacy of these policies we should explore the preferences of consumers regarding different technologies. In this paper we use a discrete choice approach used in “Canadian Integrated Model system” (SIMS) to identify the behavioral components. This model has a hybrid top-down bottom-up structure. For this purpose we estimate a multi-nominal logit model (MNL) for different automobile technologies and different transportation modes based on preferences revealed by a sample of 250 Tehran citizens. Then, we evaluate the effects of economic, technological and environmental policies on market share of different automobile technologies and air pollution in Tehran. These policies include gasoline price increase, pollution tax, limitations on single passenger cars and limitations on use of gasoline driven cars. According to this analysis, technology based policies can effectively correct the market shares towards clean traffic technologies