Icelandic Elves

Nothing worse than a bunch of angry elves: Icelandic town hopes angry elves have been soothed by songs.

It is hoped that elves and hidden people around the north-western Icelandic town of Bolungarvik will start to calm down again following their recent dangerous pranks and humans’ subsequent efforts to appease them.
Local residents sang songs and said prayers in honor of the peeved hidden folk and elves this week in an effort to smooth ruffled feathers. Dynamiting began again midweek following a nasty incident, reported here, where rocks and soil rained down on Bolungarvik.
Some people pointed the finger of blame on angry elves who had finally snapped. The dynamiting for the town’s new avalanche defense barrier comes less than a year after a new road tunnel through the Oshlid hill was completed — neither of which with the prior blessing of the hidden people.
Seers requested the Bolungarvik municipal government make a full apology to the hidden people and elves for the disturbance the avalanche barrier and tunnel have caused them.

Apparently, many Iceland residents actually believe in elves.

Expression of belief in huldufólk or "hidden folk", the elves that dwell in rock formations, is common in Iceland. If the natives do not explicitly express their belief, they are often reluctant to express disbelief.