Councillors have ordered a report from officers about whether trams or light railways could help solve traffic problems.
They want to find out if Brighton and Hove could copy similar systems operating in other towns and cities.
However, the city council's environment committee rejected a plea by Lib Dem councillor Paul Elgood for a full-scale study into the idea funded by parking charge profits, followed by a referendum if such a scheme looked promising.
Coun Elgood said the Croydon Tramlink project was used by 18 million people a year and had increased trade in the town centre and reduced car use.
Labour transport councillor Simon Battle said much of the Croydon system had been built on old railway lines and the same conditions did not apply in Brighton and Hove.
He said what the city needed was a debate on how to achieve an integrated transport system.
Tory councillor Pat Drake said when East Sussex County Council was in charge of transport in Brighton, it carried out a study which rejected the idea of trams because most roads were unsuitable.
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