Abstract: In order to meet the requirement of energy-saving and emission reduction, an optimization model of bus scheme and frequency was proposed based on the analysis of passengers' travel behavior, operator's cost and the emissions. The nonlinear integer programming model was solved by the deterministic global optimization algorithm combined with computational iterative approach. Compared with the simplex diesel bus scheme, the scheme with hybrid vehicle types results in a saving of 4.1% of user cost, 1.1% of operator cost, and 21.5% of emissions, respectively. The results demonstrate the application and the effectiveness of the model and algorithm.