Use debug settings like in the development config and get rid of all other lines mentioning assets:
# config/environments/staging.rb
config.assets.debug = true
Use the rails_12factor gem so heroku will serve the assets:
# Gemfile
gem 'rails_12factor'
Edit:
On heroku you can set the environment with:
$ heroku config:set --remote staging RACK_ENV=staging RAILS_ENV=staging
Assuming you deploy to multiple environments and called the staging one "staging". Make sure your Procfile which specifies the start command does not specify the environment.