Evidently, a large number of Icelanders believe in Elves. Slate has this story about how to find and pacify elves who may be disrupting civic projects.Excerpt: According to a poll conducted in 2007, 54 percent of Icelanders don't deny the existence of elves and 8 percent believe in them outright, although only 3 percent claim to have encountered one personally.
Before the aluminum company Alcoa could erect a smelting factory, "it had to defer to a government expert to scour the enclosed plant site and certify that no elves were on or under it."
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