You can't do it using environment variables directly. You need to use the set of "non standard" options that are passed to the java command. Run: java -X for details. The options you're looking for are -Xmx and -Xms (this is "initial" heap size, so probably what you're looking for.)
Some products like Ant or Tomcat might come with a batch script that looks for the JAVA_OPTS environment variable, but it's not part of the Java runtime. If you are using one of those products, you may be able to set the variable like:
set JAVA_OPTS="-Xms128m -Xmx256m"
You can also take this approach with your own command line like:
set JAVA_OPTS="-Xms128m -Xmx256m"
java ${JAVA_OPTS} MyClass
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