Which environment variable contains a list of directories that is searched for commands to execute?

The environment variable that contains a list of directories that is searched for commands to execute is PATH.

When you enter a command in the terminal, the shell searches for that command in the directories listed in the PATH variable. If the command is found in one of the directories, it can be executed directly by typing its name in the terminal. If the command is not found in any of the directories listed in PATH, you will get a “command not found” error.