Before delving into the nuts and bolts of why running an air conditioner on high costs more money, you should be aware that, in warm climates, air conditioning can consume as much as 70 percent of your summer utility bill, and central air units are the worst. You could run about four medium-size window units for what running a single central air conditioning system takes in the way of energy. To understand why so much electricity is required to run a unit, start with the compressor.
The engine that drives your air conditioning unit, whether it's central or in a window, is the compressor, which is a heavy bit of equipment that does the yeoman's work of compressing the refrigerant so that it turns from liquid to gas, thus providing the cooling effect for hot air being drawn from the room. The reality of the situation is that your compressor uses a lot of electricity to do its work. The only way to make it use less is to choose a thermostat setting that doesn't require it to switch on as often.
As mentioned, the compressor draws the lion's share of electricity demanded by an air conditioning unit. The lower the temperature you set the thermostat to, the harder the compressor has to work to cycle enough refrigerant through the system to cool the air that much more. The longer and harder the compressor works, the more expensive it is to your pocket book. The reason is simple: Running an air conditioner on high uses more electricity than on low.
You should also be aware that there are extrinsic environmental factors that can cause your air conditioning unit to work harder. Installing an awning over the unit helps keep it cooler and allows it to work more efficiently. A shaded air conditioner uses 5 percent less electricity that one in direct sunlight, according to Top54U.com. Installing a ceiling fan in the room lets you raise the thermostat to about 82 degrees and still be comfortable.