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What is erg valve on 2001 ford escape?

There's no part officially called an "ERG valve" on a 2001 Ford Escape. The correct term is EGR valve, which stands for Exhaust Gas Recirculation valve.

The EGR valve on a 2001 Ford Escape (like most vehicles with this system) is a component of the emissions system. It recirculates a portion of the exhaust gases back into the intake manifold to lower combustion temperatures and reduce the formation of nitrogen oxides (NOx). A faulty EGR valve can lead to various problems, including rough running, poor fuel economy, and trouble passing emissions tests.