Carbon dioxide intensities in economic terms (GDP in PPP terms) in industrialized and developing countries have been shown to converge, and it has been argued that technology diffusion, leading to the use of similar technologies in all countries, is all important reason for this convergence. Indicators based on CO2 per output in PPP terms, however, give in comparison to physical indicators limited understanding of the process of technology diffusion. In order to analyze the technology diffusion hypothesis in more detail, we therefore study the trend in carbon dioxide emissions in relation to the production output in four separate sectors: iron and steel; paper, board and pulp; coal fuelled power plants; and natural gas fuelled power plants, in each of 12 Countries, between 1980 and 1998. The indicators converge in each sector, indicating that across countries, technologies with more similar carbon dioxide efficiencies are used today than 25 years ago. We also find that at least some developing countries with high energy prices use more efficient technologies than industrialized countries with low energy prices. (c) 2006 Elsevier Ltd. All rights reserved.