Air pollution is costing China 3.8% of its GDP while water pollution is costing another 2%, according to a World Bank report. The report estimated this year's combined health and non-health costs of air and water pollution at around US$100 billion, state media reported. David Dollar, the World Bank's county director for China and Mongolia, cited particulate matter found in the air as a leading cause of lung disease and a major indirect cause of work and school absenteeism. To solve the problem, China should continue to move factories away from cities, encourage clean-burning fuels, and limit the introduction of new private cars, Dollar said.