A fence won't work.
Sonex insulating foam can be very effective at the source of the noise, like down the dogs throat, but I'm guessing you are an animal lover and don't want to hurt little poochie.
That leaves fighting fire with fire, er I mean sound with sound.
A person at the end of their rope might take skyco's ultrasonic dog trainer and hook it up to oh I dunno an air horn from a semi, or a tugboat, maybe a space shuttle booster rocket. Something slightly louder and more annoying than Wolfie the wonderdog.
Heck someone really smart could hook it to an autodialer and Wolfie could call his master direct on the telephone! Woof, woof UPS is here

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If you escalate with your neighbor, its your own doing leave me out of it. I'm just trying to have a little fun here..
I do sympathize with your situation, but don't have much in the way of constructive advice. Kindness is alway a good option. Much less likely to lead to a Hatfield Mccoy type relationship.