Will they listen to the reason why he does this?

Training,training,training...your dog needs to learn not to bark or get upset at anyone or anything that goes by his kennel. Get private lessons or take him to a cl. but hes going to need training pure and simple.. Also the neighbor has every right to be upset if the dog barks anytime he goes by where the dog is kept, a properly trained dog won't respond to people or other types of outside stimuli. that being said he shouldnt be teasing the dog either. You need to sit down and have a friendly convo with your neighbor where you will agree to train the dog and make it calm and submissive if he'll stop antagonizing the animal. And then get the dog trainned...