Effect and impact are two closely linked words that are often wrongly understood when it comes to their meanings. Researchers have tried to dispel confusion by way of explaining them in simple terms: Impact means the influence of one thing on another while Effect means the results of an action. This is the main difference between the two words impact and effect. Impacts usually lead to effects. While impact is used as the influence in the short run; effect can express the result in the long run. Effect thus refers to the result or the consequence of an action. Impact on the other hand does not indicate a consequence; it only implies the influence of an action. The usage of the word ‘impact’ implies
‘power’ whereas the usage of the word ‘effect’ implies ‘outcome’. This is the subtle difference between the two words. Both impact and effects can, however be positive or negative.