We elucidate mid-century climate change impacts on electricity demand accounting for endogenous adoption of residential air-conditioning (AC) in affluent, cooler countries in Europe, and in poorer, hotter states in India. By 2050, in a high-warming scenario (SSP585) AC prevalence grows twofold in Europe and fourfold in India, reaching around 40% in both regions. We document a mitigation-adaptation tradeoff: AC expansion reduces daily heat exposures by 150 million and 3.8 billion person degree-days (PDDs), but increases annual electricity demand by 34 TWh and 168 TWh in Europe and India, respectively (corresponding to 2% and 15% of today's consumption). The increase in adoption and use of AC would result in an additional 130 MMTCO₂, of which 120 MMTCO₂ in India alone, if the additional electricity generated were produced with today's power mix. The tradeoff varies geographically and across income groups: a one PDD reduction in heat exposure in Europe versus India necessitates five times more electricity (0.53 kWh vs 0.1 kWh) and two times more emissions (0.16 kgCO[Formula: see text] vs 0.09 kgCO[Formula: see text]), on average. The decomposition of demand drivers offers important insights on how such tradeoff can be moderated through policies promoting technology-based and behavioral-based adaptation strategies.

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