This thesis investigates the potential for optimizing urban transportation systems to improve overall traffic liveability through advanced simulation techniques. The research begins with an exploration of smart city concepts, focusing on the challenges of managing complex urban environments. The primary objective is to enhance traffic management systems by leveraging innovative simulation approaches that can accurately model and predict traffic behaviors under various scenarios. A critical component of this work is the development and application of city simulations. These simulations serve as the backbone for testing and validating different traffic management strategies. Initially, standalone simulations were utilized to model traffic flow and assess the impact of various interventions on CO2 emissions and traffic congestion.