No, we already have half a big blind in the pot - that 0.5BB doesn't belong to you any more. You're risking 2.5 BB now to win 1.5BB.

Find out how often he needs to fold in order for us to automatically profit with a bluff:

Bet / (Pot + Bet)
= .13 / (.7 + .13)
= .65

So we need him to fold about over 2/3 of the time, and assuming he continues with just 17% as you wrote, that's more than what we need. The important part is not to spew postflop when he calls us with his strong range. Remember that your profits are being made preflop, so there's no need to start trying to take the pot away postflop too often the few times he does continue.

This doesn't necessarily mean though that you should start raising ATC vs him - you want to exploit him without beating him over the head to let him know that he's being exploited.