Expensive, but worth it
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It's worth noting that Tallinn is very tiny - you can walk across it in an evening. They have tram and busses and they are not bad. For the past few years it was only for citizens of Tallinn and a lot of people from surrounding areas would register themselves there just for that lol.
Nevertheless I agree with Economist here - free public transportation does wonders to traffic. It's really liberating to just hop on a bus for a stop or two and never have to worry about anything. A lot of towns in EU already implement similar systems with monthly student bus passes - you pay like 30€ a month and can use public transportations to your hearts content.