Elves on Iceland

There are strange places in this world. On Iceland, the authorities have changed their plans on building a new road, so they will not disturb the elves said to live where the road was supposed to be built. I can understand if you change the plans in order not to disturb endangered animals, or even plants, but are there any proof elves actually exist? Certainly not, but ennough Icelanders believe in them, nevertheless. A strange place, that island.