Molybdenum dioxide crystallizes in a monoclinic structure which deviates on
ly slightly from the rutile structure and is characteristic of several earl
y transition metal dioxides. We present results of all-electron electronic
structure calculations based on density functional theory within the local
density approximation and using the augmented spherical wave method. The el
ectronic properties of MoO2 are dominated by strong hybridization of O 2p a
nd crystal-field-split Mo 4d states with bands near the Fermi energy origin
ating almost exclusively from Mo 4d t(2g) orbitals. In additional calculati
ons for a hypothetical high-symmetry rutile structure these bands separate
into quasi-one-dimensional d(parallel to) states pointing along the rutile
c-axis and the rather isotropically dispersing pi* bands. On going to the m
onoclinic structure, the characteristic metal-metal dimerization causes str
ong splitting of the d(parallel to) bands into bonding and antibonding bran
ches which embrace the nearly inert pi* bands at E-F. As a consequence, lar
ge portions of the Fermi surface are removed. According to our calculations
the monoclinic structure of MoO2 thus results from a Peierls-type instabil
ity of the d(parallel to) bands in the presence of, but still rather unaffe
cted by, an embedding background of pi* states. Our work has strong implica
tions for the current understanding of VO2 and the striking metal-insulator
/structural transition displayed by this material.