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The phrase 'the potential effect' is correct and usable in written English.
You can use it when talking about the potential outcome or consequence of something, particularly when you are discussing hypothetical or speculative scenarios. For example, "We must consider the potential effect that a higher tax rate might have on economic growth".
Exact(59)
The potential effect hardly needs to be spelled out.
The potential effect of the study could be significant.
Mr. Inker finds the potential effect on the mature Japanese economy more complicated.
The potential effect of the explosion was being assessed by the Environment Agency last night.
Credit Suisse, while still positive on the company overall, pointed out the potential effect.
But some political analysts played down the potential effect of the strike.
Before taking part in the ceremony, Deegan weighed the potential effect on his image.
Messer says brochures failed to show the potential effect of house price inflation.
Burnham expressed concern about the potential effect of full competition on the health service.
The potential effect on the over-all tax system, which is heavily dependent on contributions from high earners, is alarming.
The group said the N.R.C.'s consideration of the potential effect of earthquakes and terrorist attacks was insufficient.
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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