BEIJING, Aug 13 (Reuters) - China's top coal producing province has offered rewards of up to 2 million yuan ($263,800) to cities dropping off a list of the country's 10 worst polluters, the official Xinhua news agency said on Monday.

The provincial government of Shanxi in northwest China would conduct appraisals annually, Xinhua said, quoting the provincial environment watchdog.

Nearly two-thirds of Chinese cities suffer from severe air pollution, including 39 scattered across Shanxi and the northeastern rustbelt province of Liaoning, according to state media.

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