Kosterlitz-Thouless Transition and Short Range Spatial Correlations in an Extended Hubbard Model

We study the competition between intersite and local correlations in a spinless two-band extended Hubbard model by taking an alternative limit of infinite dimensions. We find that the intersite density fluctuations suppress the charge Kondo energy scale and lead to a Fermi liquid to non-Fermi-liquid transition for repulsive on-site density-density interactions. In the absence of intersite interactions, this transition reduces to the known Kosterlitz-Thouless transition. We show that a new line of non-Fermi-liquid fixed points replace those of the zero intersite interaction problem.