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The method to identify whether the Firebase Cloud Functions environment is for development or production is by checking the value of the process.env.NODE_ENV environment variable.
In a development environment, the value of process.env.NODE_ENV will be 'development', while in a production environment, the value will be 'production'.
You can use this variable to control the behavior of your code depending on whether it is running in a development or production environment. For example, you can use it to enable or disable certain features or to connect to different databases depending on the environment.