The widespread belief that elves and huldufólk live within the rocks and mountainsides of Iceland sometimes complicates things for non-Icelandic organizations trying to set up shop. Sometimes, new construction will be halted by concerned Icelanders who wish to protect the habitats of elves and huldufólk.

For instance, in 1982, over a hundred Icelanders protested at a NATO base and demanded to inspect the area for any elf dwellings. In 2004, ALCOA, a company that specializes in aluminum, had to halt construction of a smelter and hire a government official to inspect the area for elven ruins.

While much of the world likes to poke fun at the idea of wacky Icelanders getting worked up over fairytales, belief in elves and huldufólk may be about more than simple superstition. It's possible that belief in the supernatural in Iceland may be related to modern day environmentalism.

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To better understand this theory, we have to take a look back at early Nordic history. According to Alaric Hall, a researcher of medieval Icelandic beliefs, Iceland's elves may have been created by early Viking conquerors who were disappointed to find that there was not much to conquer on the barren island of Iceland.

Hall notes, “Like everyone else in Western Europe in the Middle Ages and in the early modern period, they really wanted to be invaders. So, what elves did is they provide ... this kind of earlier indigenous population that can allow you to feel like a conqueror.”

Huldufólk: The Truth Behind Iceland's Obsession With Elves

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