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The phrase "a dampening effect" is correct and usable in written English.
It can be used to describe a situation or action that reduces or lessens the intensity or impact of something.
Example: "The new regulations have a dampening effect on the growth of small businesses in the area."
Alternatives: "a mitigating effect" or "a suppressive effect".
Exact(58)
Weak job prospects are also having a dampening effect.
Tyson had attacked and bitten Lewis during a press conference, which also had a dampening effect.
The climate of fear in the Clinton White House exerted, without doubt, a dampening effect on the Administration's internal dialogue.
And even the threat of a shutdown already is probably having a dampening effect on our economy.
Some might think this puts a dampening effect on an already very sombre story, but I find it a change from the usual, helpless feminine characters.
But austerity is still having a dampening effect on the economy, and is making it harder for the chancellor to hit his deficit reduction targets.
Rather than simply using recorded music, which often has a dampening effect on live dance performances, Ms. Tharp has elected to blend Sinatra's vocals with live musicians.
"The combination of a lackluster job market and high foreclosure activity is clearly having a dampening effect on the housing market".
Earlier vegetation green-up has a dampening effect on spring dust storms.
I suspect it will have more of a dampening effect on capital flowing into other alternatives, including the buyouts space.
More interestingly, increasing macroscopic secular values over time has a dampening effect on individual non-Pareto outcomes.
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com