Abstract:
Externality is the subject of environmental problems that was caused by human
activities, which are the externality in this study as dust that coming from the
production activity of company. This research tried to determine the factors that
causes of externality especially on people who live near the firms. Study Case:
Harapan Jaya Village, North Bekasi, Bekasi. According the theory factors causing externality are public goods, common resource, imperfect market and government failure. The population is all of the people who live near the firms. Study Case: Harapan Jaya Village, North Bekasi with sample sizes 50 people using purposively sampling method to determine the response of respondents of each variable. Then analyze data obtained in the form of quantitative analysis with utilizes multiple regression analysis. The result of this analysis found that from the fours factors, public goods, common resource, imperfect market and
government failure, only public goods, common resource and government failure have positive and partial influence to the externalities. The result of this analysis found that public goods, common resource, imperfect market and government failure have simultaneous influence to the externalities to people who live near the firms. The conclusion of the research is shown in the result of SPSS 20.0 with the Adjusted R Square value of 0.731 obtained; it indicates that 73.1% of the variations of externalities can be explained by four independent variables used in the regression equation while the rest of 26.9% is explained by another variable outside the four variables used within this research. Finding of this research is used to handle and to reduce the externality.