Hello,
I have recently found 'by using public transport' in the following sentence is closely connected with the prepositional phrase in LEO. Therefore, it should be a prepositional phrase that followed 'One way of lowering fuel consumption is'.
One way of lowering fuel consumption is
by using public transport.
The best time to practice water conservation is
before a water shortage. (prepositional phrase = noun functioning as a complement)
LEO-prepositional phrase= preposition + object of the preposition + modifiers.
As for the noun phrase 'using public transport', it can also function as a gerund phrase according to the example below shown by LEO.
One way of lowering fuel consumption is
using public transport.
One of Serena Williams' biggest disappointments after her semifinal defeat was
losing her spot for tennis singles in the Olympics. (gerund phrase = complement)
LEO- gerund phrase = gerund + modifiers, objects, or complements.
I am only a learner of English, I hope the experts or grammarians can correct this reply.
Thank you.
With best wishes.