I wish to collect the data of Annual Average conc. of SO2, NO2 indicators, state-wise. The data available is citywise. Can I take average of all the cities within the state and use it for state wise analyasis?
This would of course result in data which is biased towards cities. Rural concentrations could be quite different due to myriad reasons. If you are explicit about your geographical data bias you could state that the average concentrations in cities in the state are 'x'. Thus, I think it would not be accurate to state that it is a state-wide average.
Belt and braces would be to take a population weighted average of the cities , but it might be better to explain what the problem is, as there might be better analytical solution to what you are trying to do.