Abstract: | We report ab initio calculations of the quasiparticle band structure and the optical excitation spectrum of bulk MgO, the MgO(001) surface, and CO molecules adsorbed on MgO(001). Many-body exchange and correlation effects are included within the GW approximation of the electron self-energy operator and the corresponding electron–hole interaction. The excited electron–hole states are obtained from the Bethe–Salpeter equation. At the clean MgO(001) surface exciton states are found with binding energies that are significantly stronger than in the bulk. The exciton spectrum of the adsorbate system CO:MgO is dominated by charge-transfer excitons, which couple strongly to the molecular excitations of CO. PACS 73.20.At; 73.20.Hb; 34.70.+e |