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I'm sorry to hear about such a dilemma. It could be allergy... or it could also be something parasitic. Surprisingly, not all dogs are prone to scratching when found with mange.
Either way, whether it is a skin problem or behavior, I think you should start with figuring out when it mostly occurs-such as whether after eating, after going out of the house, out of the yard or even after rubbing through the carpet. Some dogs are allergic to certain types of detergents and cleaners.
If you do want to deter Peanut from licking excessively, try rubbing some citrus fruit unto the paws that he always lick. The strong sour scent can sometimes deter him from licking excessively. Unripe lemon could work. Is the paw red? Are there encrustations or signs of parasitic infection?
Also, try to make sure that your dog food is grain free. Some good dog food options for allergic dogs are Blue Buffalo and Go Natural.
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