An expert report has suggested a congestion charge should be introduced in Dublin.
The ESRI has been looking at how to reduce carbon emissions.
It made a number of recommendations in its report, including introducing a congestion charge.
It suggested the charge could encourage more drivers to stop using their cars.
The report stated that the measure "would influence the degree to which consumers switch from high carbon consumption to lower carbon alternatives".
Author of the report, Miguel Tovar Reaños, said the research confirmed "carbon taxation is an effective way of reducing carbon emissions".
London has a similar model in place, where commuters who want to drive into the city centre pay hefty fees.
Congestion Charge Dublin
However, a leading business group has argued public transport in Dublin would need to significantly improve first.
Graeme McQueen from the Dublin Chamber of Commerce believes the suggestion of a congestion charge is "a lazy option".
"There's till far too many people around the city who don't have a compelling bus offering", he said.
"Let along a rail offering or a Luas line, so we need to focus on that first".
"Once we get the public transport up to speed, then we could look at how to incentive people to get out of their cars", he said.
The ESRI report also found that increasing carbon taxes would reduce emissions, but income inequality would get worse.
