I dont think size really matters. Good piston rings, good vacuum hoses, spark plugs, and of course emissions stuff play a big part. Also the cat converter.
How well the engine is put together and how finely tuned your system is are factors for emissions.
edit: Also. Power AND emissions can both be increased by increaseing efficiency. Anyone ever tell you that you cant get mileage and power? They're wrong. Its all about efficiency. Why do you think vortec heads are so popular? They are efficient and combust the mix very well. Thats also why TBI heads were a step up from carb heads. The vortecs can just flow better, and are slightly more efficent. So if you run your engine around a 195 thermostat, a fuel system tuned to your engine, and dont have things that decrease efficiency like bad filters, crummy oil, etc. you will lose power and your motor has to work harder to get done what it needs to.