A series of calculations on MgB2 and related isoelectronic systems indicate
s that the layer of Mg2+ ions lowers the nonbonding B pi (p(z)) bands relat
ive to the bonding sigma (sp(x)p(y)) bands compared to graphite, causing si
gma --> pi charge transfer and sigma band doping of 0.13 holes/cell. Becaus
e of their two dimensionality the a bands contribute strongly to the Fermi
level density of states. Calculated deformation potentials of Gamma point p
honons identify the B bond stretching modes as dominating the electron-phon
on coupling. Superconductivity driven by sigma band holes is consistent wit
h the report of destruction of superconductivity by doping with Al.