The potential for the use of renewable sources of energy in China and India and their cost effectiveness in air pollution abatement in Asia is studied. This is done through an integrated assessment of the costs and the environmental impacts of several types of renewables, in comparison with fossil fuels. Results for different scenarios for fuel use in China and India for the period 1990-2020 are presented, The acidification model RAINS-ASIA is used to analyze environmental impacts (exceedance of critical loads for acidification) and to perform an optimization analysis, aiming at minimizing abatement costs. The costs of sulfur dioxide (SO,) emission-control through the switch to renewable energy sources are analyzed and compared with the costs of controlling the emissions from fossil fuels (e.g. through flue gas desulfurization). For the environmental targets analyzed in this study an increased use of renewable energy could cut SO2 emission-control costs in China by 17-35%, and in India by more than two thirds.