This research has reviewed existing literature to assess the implications of e-working and other ICTs on travel behaviour and traffic reduction in Scotland. The work has comprised a detailed literature review, together with some limited analysis of Scottish Household Survey, Eurostats and UK Office of National Statistics Online data. Information and knowledge are replacing capital and energy as the primary wealthcreating assets, just as the latter two replaced land and labour 200 years ago. Within this new economy, the long held association between car use and wealth is being challenged. It appears that the amount of travel needed to support each pound of economic activity is now able to fall as a result of ICT. 13.5% of working adults spend at least some of their working hours at home. Scottish e-working is concentrated in managerial, professional and technical sectors, and is most prevalent in large urban and accessible rural locations. The proportion of people who could telework in the future is unlikely to exceed 40% without major economic restructuring. High take up of e-working is associated with low population densities, the need for security by working from dispersed locations, fiscal incentives, and the prevalence of managerial, professional and administrative jobs. E-working is part of a number of flexible working practices and reflects management approaches that focus on delivering results rather than staff putting in hours. Both staff and employers find teleworking increases efficiency and flexibility as well as job satisfaction. Whilst e-working solutions may be effective in meeting the functional requirements of activities, they may well fall short of meeting other social or psychological requirements. If journeys to work are being replaced by e-working, and business travel is being reduced by the use of teleconferencing, these effects lower travel demand. There is however a complex matrix of second-order effects, which in many cases reduces or negates the traffic reduction effects as shown below. Nevertheless e-working can help to uncouple long term relationships between economic growth and travel demand, and based on current patterns of economic activity, and capabilities of current technology, a managed approach could achieve reductions of up to 11% in travel demand in the Scottish context. Other flexibilities associated with e-working such as greater choice of journey time, mean that much greater reductions in congestion are also possible, making better use of existing capacity. However this upper bound estimate must be viewed within the context of dynamic lifestyle and travel choices within which e-working is only one factor. If alternatives to e-working become less attractive, (e.g. if traffic congestion grows) then e-working will increase and travel demand fall, which may in turn encourage people to e-work less and travel more and so on. E-working also impacts more upon reducing public transport use than car use, by allowing people to switch mode and use their car at an uncongested time of day.