A number of in-memory variables are assigned and loaded by default when the user logs in. These variables are known as shell environment variables, which can be used by various commands to get information about your environment, such as the type of system you are running, your home directory, and the shell in use. Environment variables are used by Linux operating systems to help tailor the computing environment of your system, and include helpful specifications and setup, such as default locations of executable files and software libraries.
At the command line, you can use the env or printenv commands to display these environment variables.
Reference: Ubuntu Unleashed 2008 Edition
very helpful blog
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