Where does \environment look?

Hi,

If TEXINPUTS is not defined, file.tex has

\input xyzzy.tex

and xyzzy.tex is not in the same directory as file.tex, but rather in the
parent directory, when I run
        context file.tex
xyzzy.tex is (unsurprisingly to me) not found.

But if instead file.tex has

\environment xyzzy.tex

then context (evidently) looks in the parent directory and (more
surprisingly to me) finds xyzzy.tex.

The wiki page for \environment does not describe where \environment will
hunt for the given file.  Is the "search path" which \environment uses
documented somewhere?  Failing that, can someone in the know tell me where
it looks?

Thanks.
                                Jim

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