Drivers often change lanes on the road to maintain desired speed and to avoid slow vehicles, pedestrians, obstacles and lane closure. Understanding the effect of lane-changing on the traffic is an important topic in designing optimal traffic control systems. This paper presents a comprehensive study of this topic. We review the theory of microscopic car-following models and the lane-changing models, propose the lane-changing rules to deal with moving bottleneck and lane reduction, compare the presented model with the well established MOBIL lane-changing model and investigate the effects of lane-changing on the traffic efficiency, traffic safety and fuel consumption as a function of different variables including the distance of the emergency sign ahead of the lane closure, speed limit, traffic density \textit{etc}. Extensive simulations of the traffic system have been carried out. A number of important findings of the effect of various factors on the traffic are reported. These findings will be important to the designers of modern highway or inner city roads to achieve high traffic efficiency and safety with minimum environmental impact.