In Elixir, configuration can be managed using `config/config.exs` for application settings. You can also use environment variables and the `Mix.Config` module to manage different environments.

Handling configuration in an Elixir application is straightforward and flexible, enabling developers to manage settings effectively for different environments such as development, testing, and production. Elixir applications typically utilize the config/config.exs file, which is the main configuration file where you can define application-specific settings. Within this file, you can set key-value pairs for your application's configuration, including database settings, API keys, and other runtime parameters. To manage different environments, you can create separate configuration files like config/dev.exs, config/test.exs, and config/prod.exs. Each of these files can override or extend the settings defined in config/config.exs, allowing you to customize configurations based on the environment. Additionally, Elixir supports the use of environment variables, which can be accessed using the System.get_env/1 function. This is particularly useful for managing sensitive information, such as API keys or database credentials, without hardcoding them into your source code. You can also leverage libraries like dotenv to load environment variables from a .env file for local development. By structuring your configuration effectively and utilizing environment variables, you can ensure that your Elixir applications are secure, flexible, and adaptable to different deployment scenarios.