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No. You can not emulate it as its been said it'll simply default to your CPU. My suggestion? Buy a cheap Nvidia 500 series card and use it strictly as a Physx card.
I believe the OP is asking about physx on consoles with ATI video hardware. There was a note just released about one of the consoles the other day, which is what I'm assuming sparked the question.
Seems like some of the answers above are more geared to someone using their PC with an ATI card...
If he was asking that then he was EXTREMELY vague about it.
It's in the console gaming section...