Abstract
The land use allocation problem is an important issue for a sustainable development. Land use optimization can have a profound influence on the provisions of interconnected elements that strongly rely on the same land resources, such as food, energy, and water. However, a major challenge in land use optimization arises from the multiple stakeholders and their differing, and often conflicting, objectives. Industries, agricultural producers and developers are mainly concerned with profits and costs, while government agents are concerned with a host of economic, environmental and sustainability factors. In this work, we developed a hierarchical FEW-N approach to tackle the problem of land use optimization and facilitate decision making to decrease the competition for resources and significantly contribute to the sustainable development of the land. We formulate the problem as a Stackelberg duopoly game, a sequential game with two players - a leader and a follower (Stackelberg, 2011). The government agents are treated as the leader (with the objective to minimize the competition between the FEW-N), and the agricultural producers and land developers as the followers (with the objective to maximize their profit). This formulation results into a bi-level mixed-integer programming problem that is solved using a novel bi-level optimization algorithm through ARGONAUT. ARGONAUT is a hybrid optimization framework which is tailored to solve high- dimensional constrained grey-box optimization problems via connecting surrogate model identification and deterministic global optimization. Results show that our data-driven approach allows us to provide feasible solutions to complex bi-level problems, which are essentially very difficult to solve deterministically.